ARBITRAGE

arbitrage

(noun) 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

arbitrage

(verb) practice arbitrage, as in the stock market

Source: WordNet® 3.1


Etymology

Noun

arbitrage (countable and uncountable, plural arbitrages)

(finance) 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.

(archaic) Arbitration.

Verb

arbitrage (third-person singular simple present arbitrages, present participle arbitraging, simple past and past participle arbitraged)

(intransitive, finance) To employ arbitrage

(transitive, finance) To engage in arbitrage in, between, or among

Source: Wiktionary


Ar"bi*trage, n. Etym: [F., fr. arbiter to give judgment, L. arbitrari.]

1. Judgment by an arbiter; authoritative determination. [Archaic]

2. (Com)

Definition: A traffic in bills of exchange (see Arbitration of Exchange); also, a traffic in stocks which bear differing values at the same time in different markets.

Source: Webster’s Unabridged Dictionary 1913 Edition



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Word of the Day

27 April 2025

APPROXIMATE

(adjective) not quite exact or correct; “the approximate time was 10 o’clock”; “a rough guess”; “a ballpark estimate”


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Coffee Trivia

According to Guinness World Records, the largest collection of coffee pots belongs to Robert Dahl (Germany) and consists of 27,390 coffee pots as of 2 November 2012, in Rövershagen, Germany.

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