Arbitrager
(noun)
- A person who takes advantage of price differences between markets by buying and selling securities or commodities in different markets in order to make a profit.
- An investment strategy that involves taking advantage of price differences between two or more markets in order to make a profit.
Origin:
Derived from the french word 'arbitrage' meaning 'arbitration'.
Examples:
- The hedge fund manager was a skilled arbitrager, buying stocks in one market and selling them in another for a profit.
- The arbitrager carefully monitored the prices of commodities in multiple markets, looking for any discrepancies that could be exploited.
- Arbitrage opportunities can arise in any market where price differences exist, such as stocks, bonds, currencies, or commodities.
- The arbitrager's strategy involved buying stocks in one market when prices were low and selling them in another market where prices were higher.
- The financial crisis of 2008 created many opportunities for arbitragers, as prices in some markets plummeted while others remained stable.