arbitrage

[ahr-bi-trahzh, ahr-bi-trij]

noun

1. Finance.,  the simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices.

2. Archaic.,  arbitration.

verb (used without object)

arbitraged, arbitraging 

1. Finance.,  to engage in arbitrage.

arbitrage

/ ˈɑːbɪˌtrɑːʒ, ˈɑːbɪtrɪdʒ, ˌɑːbɪtræˈʒɜː /

noun

1. finance

   1. the purchase of currencies, securities, or commodities in one market for immediate resale in others in order to profit from unequal prices

   2. ( as modifier )

      arbitrage operations

Other Word Forms

• arbitrageur noun

Word History and Origins

Origin of arbitrage¹

1470–80; < Middle French, equivalent to arbitr ( er ) to arbitrate, regulate (< Latin arbitrārī; arbitrate ) + -age -age

Word History and Origins

Origin of arbitrage¹

C15: from French, from arbitrer to _arbitrate

Example Sentences

He suspected, not unreasonably, that he might be the only person in Berkeley looking for arbitrage opportunities in the market for credit derivatives.

Read more on Literature

However, refined copper imports slowed, impacted by elevated prices, ample domestic supply, and unfavorable import arbitrage conditions, according to ANZ Research.

Read more on The Wall Street Journal

That’s a wider arbitrage spread than would likely prevail in a deal with a scheduled closing in about a year.

Read more on Barron's

The funding rate simply needs to keep futures prices honest by making arbitrage attractive.

Read more on MarketWatch

Bowman’s key quote: “It is not the Fed’s role to replace or arbitrage private-market activities.”

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