Arbitrage
(
noun
,
verb
)
(As a noun)
Arbitrage ( noun )
- The practice of taking advantage of a price difference between two or more markets: by buying a commodity, currency or security in one market and then immediately selling it in another market at a higher price.
- An instance of such buying and selling.
Origin:
From french, from latin arbitrarius, from arbiter.
Examples:
- The company specializes in currency arbitrage, buying dollars in one market and selling them in another for a profit.
- The investor made a significant profit through stock arbitrage, buying low in one market and selling high in another.
- The arbitrage opportunity was created by the difference in the price of the commodity in two different markets.
- The financial crisis caused many arbitrage opportunities to arise due to the fluctuations in the market.
- The arbitrage trade was executed quickly to take advantage of the price difference.
(As a verb)
Arbitrage ( verb )
- The practice of taking advantage of a price difference between two or more markets: by buying a commodity, currency or security in one market and then immediately selling it in another market at a higher price.
- An instance of such buying and selling.
Origin:
From french, from latin arbitrarius, from arbiter.
Examples:
- The company specializes in currency arbitrage, buying dollars in one market and selling them in another for a profit.
- The investor made a significant profit through stock arbitrage, buying low in one market and selling high in another.
- The arbitrage opportunity was created by the difference in the price of the commodity in two different markets.
- The financial crisis caused many arbitrage opportunities to arise due to the fluctuations in the market.
- The arbitrage trade was executed quickly to take advantage of the price difference.