arbitrage
pronunciation
How to pronounce arbitrage in British English:
UK [ˈɑ:bɪtrɑ:ʒ]
How to pronounce arbitrage in American English:
US [ˈɑrbətrɑʒ]
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- Noun:
- 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
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- Verb:
- practice arbitrage, as in the stock market
Word Origin
- arbitrage (n.)
- "exercise of the function of an arbitrator," late 15c., from Old French arbitrage "arbitration, judgment," from arbitrer "to arbitrate, judge," from Late Latin arbitrari, from Latin arbiter (see arbiter).
Example
- 1. Shun arbitrage strategies that assume permanent access to liquidity .
- 2. Some firms exploited these gaps for regulatory arbitrage .
- 3. No arbitrage can correct the mispricing .
- 4. These models remorselessly comb the markets for arbitrage opportunities .
- 5. This arbitrage behaviour is only limited by its inherent risks .