[ahr-bi-trahzh for 1, 3; ahr-bi-trij for 2]
Finance. the simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices.
Archaic. arbitration.
verb (used without object), arbitraged, arbitraging.
Finance. to engage in arbitrage.

1470–80; < Middle French, equivalent to arbitr(er) to arbitrate, regulate (< Latin arbitrārī; see arbitrate) + -age -age Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
arbitrage (ˈɑːbɪˌtrɑːʒ, ˈɑːbɪtrɪdʒ)
 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]

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
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Cite This Source's 21st Century Lexicon
Main Entry:  arbitrage1
Part of Speech:  n
Definition:  the process of arbitration; decision by arbitration
Etymology:  Latin arbitrari 'to give judgment'
Main Entry:  arbitrage2
Part of Speech:  n
Definition:  authoritative decision or exercise of judgment
Etymology:  Latin arbitrari 'to give judgment'
Main Entry:  arbitrage
Part of Speech:  v
Definition:  to engage in arbitrage
Etymology:  Latin arbitrari 'to give judgment'
Usage:  intransitive's 21st Century Lexicon
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Word Origin & History

late 15c., from Fr. arbitrage, from arbitrer "to arbitrate, judge," from L.L. arbitrari, from L. arbiter (see arbiter).
Online Etymology Dictionary, © 2010 Douglas Harper
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Example sentences
But one of the major ideas in behavioral finance is that irrational markets may
  still be impossible to arbitrage.
Hence, the wonders of arbitrage and if the economy hadn't taken the downturn,
  such an approach might have continued to work.
If you think the market is wrong feel free to arbitrage.
Statistical arbitrage worked pretty well, for example.
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