Arbitrage
WordNet
noun
(1) 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
verb
(2) Practice arbitrage, as in the stock market
WiktionaryText
Etymology
From < ; see arbitrate.
Noun
- The practice of quickly buying and selling foreign currencies in different markets in order to make a profit
- The purchase of the stock of a future takeover target, with the expectation that the stock will be sold to the person executing the takeover at a higher price
- Any market activity in which a commodity is bought and then sold quickly, for a profit which substantially exceeds the transaction cost
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Related terms
- arbiter
- arbitrable
- arbitrary
- arbitrate
- arbitration
- arbitrator
Verb
- To employ arbitrage
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- To engage in arbitrage in, between, or among
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Noun
- arbitration (the act or process of arbitrating)
- trade-off