noun
- the practice of buying and selling the same asset in different markets to profit from price differences
Usage: finance; economics
verb
- to engage in arbitrage; to buy and sell assets to profit from price differences
Usage: finance; economics
Examples
- The trader made money through currency arbitrage by buying euros in London and selling them in New York.
- Oil arbitrage opportunities exist when prices differ between regional markets.
- The investment firm specializes in arbitrage between stock exchanges.
- He decided to arbitrage the price difference between the two commodity markets.
- Arbitrage helps eliminate price discrepancies across different trading platforms.
- The company’s arbitrage strategy generated consistent profits last quarter.