arbitrage

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ar·bi·trage

 (är′bĭ-träzh′)
n.
The simultaneous purchase and sale of equivalent assets or of the same asset in multiple markets in order to exploit a temporary discrepancy in prices.
intr.v. ar·bi·traged, ar·bi·trag·ing, ar·bi·trag·es
To be involved in arbitrage.

[Middle English, arbitration, from Old French, from arbitrer, to judge, from Latin arbitrārī, to give judgment; see arbitrate.]

arbitrage

(ˈɑːbɪˌtrɑːʒ; ˈɑːbɪtrɪdʒ)
n
(Banking & Finance) finance
a. the purchase of currencies, securities, or commodities in one market for immediate resale in others in order to profit from unequal prices
b. (as modifier): arbitrage operations.
[C15: from French, from arbitrer to arbitrate]
arbitrageur n

ar•bi•trage

(ˈɑr bɪˌtrɑʒ)

n., v. -traged, -trag•ing. n.
1. the simultaneous sale of a security or commodity in different markets to profit from unequal prices.
v.i.
2. to engage in arbitrage.
[1470–80; < Middle French, <arbitr(er) to arbitrate, regulate (< Latin arbitrārī; see arbitrate)]

arbitrage

the business of buying and selling securities, curreneies, and commodities on an international scale so as to take advantage of differences in rates of exchange and prices. — arbitrager, arbitrageur, n.
See also: Money

arbitrage

A situation in which it is possible to buy an asset in one market and then sell it immediately in another market at a higher price.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.arbitrage - a kind of hedged investment meant to capture slight differences in pricearbitrage - a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price
risk arbitrage, takeover arbitrage - arbitrage involving risk; as in the simultaneous purchase of stock in a target company and sale of stock in its potential acquirer; if the takeover fails the arbitrageur may lose a great deal of money
investing, investment - the act of investing; laying out money or capital in an enterprise with the expectation of profit
Verb1.arbitrage - practice arbitrage, as in the stock marketarbitrage - practice arbitrage, as in the stock market
commerce, commercialism, mercantilism - transactions (sales and purchases) having the objective of supplying commodities (goods and services)
merchandise, trade - engage in the trade of; "he is merchandising telephone sets"
Translations

arbitrage

[ˌɑːbɪˈtrɑːʒ] Narbitraje m

arbitrage

[ˈɑːrbɪtrɑːʒ] n (FINANCE)arbitrage m
References in periodicals archive ?
The prices obtained are shown to be consistent with arbitrage-free pricing valid for financial claims, and incorporate preferences of agents otherwise.
Hence, I propose a new and tractable modification for GATSMs that enforces the ZLB, and which approximates the fully arbitrage-free but much less tractable framework proposed in Black (1995).
The latter generalize the Nelson-Siegel approach (Nelson and Siegel, 1987)) and derive five factors so that the Nelson-Siegel term structure model can be put in an arbitrage-free, general equilibrium model setting.
n+1] is arbitrage-free, complete and continuously open between time 0 and T, where T>0, i.
A smart solution to this problem consists of using arbitrage-free conditions, a replication technique of asset payoffs that retains the core fundamentals of equilibrium models.
The theorem states that, if there exists a risk-free asset (we can denote the corresponding risk-free interest rate by r), then the market is arbitrage-free if and only if there exists a probability measure Q, such that [S.
Poitras, 1994, "Securities Markets, Diffusion State Processes, and Arbitrage-Free Shadow Prices", Journal of Financial and Quantitative Analysis, 29:223-239
For the new edition they have simplified and clarified some of the material regarding robust representations of risk measures, arbitrage-free pricing of contingent claims, convergence to Black-Scholes prices, and stability under pasting with its connections to dynamically consistent coherent risk measures.