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.