arbitrage
/ˈɑɹbɪˌtɹɑʒ/ noun, verb
Forms arbitrages arbitraging arbitraged
- noun (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.
- noun (archaic) Arbitration.
- verb (intransitive, finance) To employ arbitrage
- verb (transitive, finance) To engage in arbitrage in, between, or among
Etymology
An unadapted borrowing from French arbitrage, from arbitrer (“to arbitrate”); see arbitrate.
Webster’s 1913
- noun Judgment by an arbiter; authoritative determination. [Archaic]
- noun 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.
Etymology [F., fr. arbiter to give judgment, L. arbitrari.]
Sources: Wiktionary · Webster’s 1913 — from the Wiktionary entry “arbitrage”, CC BY-SA 4.0. Details