arbitrage

American  

[ahr-bi-trahzh, ahr-bi-trij] / ˈɑr bɪˌtrɑʒ, ˈɑr bɪ trɪdʒ /

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.

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verb (used without object)

arbitraged, arbitraging

1. Finance. to engage in arbitrage.

arbitrage British  

/ 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

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Other Word Forms

• arbitrageur noun

Etymology

Origin of arbitrage

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

Example Sentences

The practical difficulty in taking advantage of the diverging prices through arbitrage also might help explain how the anomaly is possible.

From The Wall Street Journal

“We continue to believe a final decision will be rendered in 2027…we fully expect the arbitrage deal spread to widen when trading resumes next week.”

From Barron's

We call this “time arbitrage,” as short-term volatility is monetized for long-term gain.

From Barron's

Youth women’s soccer, alongside weightlifting and table tennis, is something of an athletic arbitrage for cash-strapped North Korea.

From The Wall Street Journal

But for SGH, “we find accretion and leverage outcomes relatively resilient to changes in bid prices owing to solid deal multiple arbitrage,” they say.

From The Wall Street Journal