arbitrage — English Dictionary

Noun

1. A market activity in which a security, commodity, currency or other tradable item is bought in one market and sold simultaneously in another, in order to profit from price differences between the markets.

   Usage

   • Countable
   • Uncountable

   Examples

   But in recent years, for reasons we shall develop later, the field of "arbitrages and workouts" became riskier and less profitable.

2. Arbitration.

   Usage

   • Archaic
   • Countable
   • Uncountable

Verb

1. To employ arbitrage

   Usage

   • Intransitive

   Examples

   He has arbitraged by purchasing in one market and simultaneously selling the same or similar merchandise in another market.

2. To engage in arbitrage in, between, or among

   Usage

   • Transitive

   Examples

   Indeed, as banks become more adept at internal risk classifications, their incentives to arbitrage economic and regulatory capital can only increase

Noun

1. a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price

   Broader terms

   investinginvestment

Verb

1. practice arbitrage, as in the stock market

   Broader terms

   trademerchandise