Dictionary › A › arbitrage
arbitrage
3 syllablesYour browser doesn’t have built-in voices. Try Chrome, Edge or Safari.
As a noun, arbitrage means 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. As a verb, it means employ arbitrage.
Meanings of arbitrage
6 meaningsnoun
financeA 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.
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
Older and rare meanings (1)
archaicArbitration.
verb
financeTo employ arbitrage
financeTo engage in arbitrage in, between, or among
Practice arbitrage, as in the stock market
Meanings from Wiktionary (CC BY-SA 4.0) and Open English WordNet (CC BY 4.0).