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arbitrage definition - finance
A situation in which a trader attempts to profit from minute differences in price for the same security on different stock or futures markets. Traders that employ this strategy are called arbitrageurs and use specially designed computer programs to identify price discrepancies.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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