English · Work & Business

arbitrage

/ˈɑːr.bɪˌtrɑːʒ/

[/ˈɑːr.bɪˌtrɑːʒ/]

profit from price gaps

Advancednoun

Definition

The practice of profiting from price differences for the same asset in different markets.

Example

Traders exploited the brief arbitrage between two exchanges before the prices converged.

Traders exploited the brief arbitrage between two exchanges before the prices converged.

Etymology

From French 'arbitrage' (judgment); the financial sense is established.

How & Where It’s Used

Used in finance and trading.

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