arbitrage /ˈɑːbɪtrɪdʒ, ˌɑːbɪˈtrɑːʒ / ‹Economics›


I. noun [ mass noun]

1. the simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset.

[as modifier]

profitable arbitrage opportunities.
II. verb [no obj.]

1. buy and sell assets using arbitrage.

much of the short selling was being done by people who were arbitraging between the bond and the equity market.
– origin late Middle English (originally denoting the exercise of individual judgement): from French, from arbitrer ‘give judgement’, from Latin arbitrari (see arbitrate). The current sense dates from the late 19th cent.

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