Arbitrage definition

ärbĭ-träzh
The simultaneous purchase and sale of equivalent assets or of the same asset in multiple markets in order to exploit a temporary discrepancy in prices.
noun
0
0
To be involved in arbitrage.
verb
0
0
A simultaneous purchase and sale in two separate financial markets in order to profit from a price difference existing between them.
noun
0
0
A buying of a large number of shares in a corporation in anticipation of, and with the expectation of making a profit from, a merger or takeover.
noun
0
0
To engage in arbitrage.
verb
0
0
Advertisement
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.
0
0
The practice of quickly buying and selling foreign currencies in different markets in order to make a profit.
noun
0
0
The purchase of the stock of a future takeover target, with the expectation that the stock will be sold to the person executing the takeover at a higher price.
noun
0
0
Any market activity in which a commodity is bought and then sold quickly, for a profit which substantially exceeds the transaction cost.
noun
0
0
(intransitive, finance) To employ arbitrage.
verb
0
0
Advertisement
(finance) To engage in arbitrage in, between, or among.
verb
0
0

Other Word Forms

Noun

Singular:
arbitrage
Plural:
arbitrages

Origin of arbitrage

  • Middle English arbitration from Old French from arbitrer to judge from Latin arbitrārī to give judgment arbitrate

    From American Heritage Dictionary of the English Language, 5th Edition

  • Borrowing from French arbitrage, from arbitrer (“to arbitrate”); see arbitrate.

    From Wiktionary