arbitrage(redirected from Arbitrage Strategy)
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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.]
(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]
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)]
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
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.
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|Noun||1.||arbitrage - 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
|Verb||1.||arbitrage - practice arbitrage, as in the stock market|
commerce, commercialism, mercantilism - transactions (sales and purchases) having the objective of supplying commodities (goods and services)