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arbitrage

[ahr-bi-trahzh for 1, 3; ahr-bi-trij for 2] /ˈɑr bɪˌtrɑʒ for 1, 3; ˈɑr bɪ trɪdʒ for 2/
noun
1.
Finance. the simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices.
2.
Archaic. arbitration.
verb (used without object), arbitraged, arbitraging.
3.
Finance. to engage in arbitrage.
Origin
1470-1480
1470-80; < Middle French, equivalent to arbitr(er) to arbitrate, regulate (< Latin arbitrārī; see arbitrate) + -age -age
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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Examples from the web for arbitrage
  • 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.
  • Nothing makes you more powerful inside the joint than a strong grounding in currency arbitrage.
  • Rather, the charges involved trades conducted by its arbitrage department.
  • But an even simpler answer is that it is a game of rating arbitrage.
  • Hedge funds have latched on to the opportunity for arbitrage this has thrown up.
  • The potential for arbitrage means such profits cannot be earned.
  • The arbitrage business generates its profits or losses from these differences in value.
British Dictionary definitions for arbitrage

arbitrage

/ˈɑːbɪˌtrɑːʒ; ˈɑːbɪtrɪdʒ/
noun
1.
(finance)
  1. the purchase of currencies, securities, or commodities in one market for immediate resale in others in order to profit from unequal prices
  2. (as modifier): arbitrage operations
Derived Forms
arbitrageur (ˌɑːbɪtræˈʒɜː) noun
Word Origin
C15: from French, from arbitrer to arbitrate
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition
© William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012
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Word Origin and History for 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).

Online Etymology Dictionary, © 2010 Douglas Harper
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