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arbitrage

3 syllables
Quick answer

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 meanings

noun

  1. 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.

  2. 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)
  1. archaicArbitration.

verb

  1. financeTo employ arbitrage

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

  3. Practice arbitrage, as in the stock market

Meanings from Wiktionary (CC BY-SA 4.0) and Open English WordNet (CC BY 4.0).

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