Arbitrage


Finance. the simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices.
Archaic. .
Finance. to engage in arbitrage.
Contemporary Examples

Netflix at its heart is an arbitrage on the value of content versus the cost to acquire subscribers.
Mark Cuban Shoots Straight Peter Lauria February 13, 2011

But if it happened again in 2012, it could mean either very bad or very good news for our arbitrage.
How to Make Free Money Betting on the 2012 Presidential Election Alex Klein September 5, 2012

Our top two cities reflect the importance of this arbitrage opportunity.
Hot U.S. Cities That Offer Both Jobs and Culture Are Mostly Southern and Modest Sized Joel Kotkin, Wendell Cox July 29, 2013

In essence, the trading represented an arbitrage of the speed of light itself.
Some Traders Got ‘No Taper’ Decisions News Early September 23, 2013

In financial markets, arbitrage is all about trading that minimizes risk and maximizes returns.
In ‘Arbitrage,’ Richard Gere Shows How the Price Is Right Daniel Gross September 12, 2012

Channeling his best Madoff—with a dash of Paulson and Falcone—Richard Gere plays a sneaky financier in ‘arbitrage.’
In ‘Arbitrage,’ Richard Gere Shows How the Price Is Right Daniel Gross September 12, 2012

Historical Examples

In ordinary times those engaged in arbitrage operate with a very small margin of profit.
Encyclopaedia Britannica, 11th Edition, Volume 2, Slice 4 Various

arbitrage operations are for these reasons resorted to frequently by one country in supplying the requirements of another.
Encyclopaedia Britannica, 11th Edition, Volume 2, Slice 4 Various

arbitrage operations with distant countries such as India are large and mainly profitable.
Encyclopaedia Britannica, 11th Edition, Volume 2, Slice 4 Various

They feed off market failures, market imbalances, arbitrage opportunities, shortages and inefficiencies.
After the Rain Sam Vaknin

noun
(finance)

the purchase of currencies, securities, or commodities in one market for immediate resale in others in order to profit from unequal prices
(as modifier): arbitrage operations

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).

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    a person who engages in . Contemporary Examples Far from a champion of limited government, Abramoff made his living as an arbitrager of big government. David’s Book Club: ‘Capitol Punishment’ David Frum March 22, 2012

  • Arbitrageur

    a person who engages in . Historical Examples As for the degree of risk to be taken in business of this kind, that is entirely at the discretion of the arbitrageur. Elements of Foreign Exchange Franklin Escher

  • Arbitral

    pertaining to an arbiter or to . Historical Examples Of what avail are our Courts of arbitral Justice when this intolerable economic waste is permitted! Prize Orations of the Intercollegiate Peace Association Intercollegiate Peace Association arbitral tribunals may have to deal with questions either of law or fact, or of both combined. Encyclopaedia Britannica, 11th […]

  • Arbitrament

    the act of ; . the decision or sentence pronounced by an arbiter. the power of absolute and final decision. Historical Examples To acquire creditors is not at the disposure of each man’s arbitrament. Gargantua and Pantagruel, Complete. Francois Rabelais If so, what fairer test of courage will you propose than the arbitrament of war—the […]

  • Arbitraries

    subject to individual will or judgment without restriction; contingent solely upon one’s discretion: an arbitrary decision. decided by a judge or arbiter rather than by a law or statute. having unlimited power; uncontrolled or unrestricted by law; despotic; tyrannical: an arbitrary government. capricious; unreasonable; unsupported: an arbitrary demand for payment. Mathematics. undetermined; not assigned a […]


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