What does Arbitrage mean?
Definitions for Arbitrage
ˈɑr bɪˌtrɑʒar·bi·trage
This dictionary definitions page includes all the possible meanings, example usage and translations of the word Arbitrage.
Princeton's WordNet
arbitrageverb
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
arbitrageverb
practice arbitrage, as in the stock market
GCIDE
Arbitragenoun
(Finance) the simultaneous or near simultaneous purchase and sale of the same or closely linked securities or commodities in different markets to make a profit on the (often small) differences in price.
Wiktionary
arbitragenoun
The practice of quickly buying and selling foreign currencies in different markets in order to make a profit
arbitragenoun
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
arbitragenoun
Any market activity in which a commodity is bought and then sold quickly, for a profit which substantially exceeds the transaction cost
arbitrageverb
To employ arbitrage
arbitrageverb
To engage in arbitrage in, between, or among
Etymology: From arbitrage, from arbitrer; see arbitrate.
Webster Dictionary
Arbitragenoun
judgment by an arbiter; authoritative determination
Arbitragenoun
a traffic in bills of exchange (see Arbitration of Exchange); also, a traffic in stocks which bear differing values at the same time in different markets
Etymology: [F., fr. arbiter to give judgment, L. arbitrari.]
Wikidata
Arbitrage
In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit at zero cost. In principle and in academic use, an arbitrage is risk-free; in common use, as in statistical arbitrage, it may refer to expected profit, though losses may occur, and in practice, there are always risks in arbitrage, some minor, some major. In academic use, an arbitrage involves taking advantage of differences in price of a single asset or identical cash-flows; in common use, it is also used to refer to differences between similar assets, as in merger arbitrage. People who engage in arbitrage are called arbitrageurs —such as a bank or brokerage firm. The term is mainly applied to trading in financial instruments, such as bonds, stocks, derivatives, commodities and currencies.
Dictionary of Nautical Terms
arbitrage
The referring commercial disputes to the arbitration of two or more indifferent persons.
Numerology
Chaldean Numerology
The numerical value of Arbitrage in Chaldean Numerology is: 3
Pythagorean Numerology
The numerical value of Arbitrage in Pythagorean Numerology is: 9
Examples of Arbitrage in a Sentence
I think some of these are institutional people positioning to play this as part of a risk arbitrage if the deal moves forward.
Spreads in gas price between Asian LNG and U.S. gas have fallen by 50 percent from $12 to 6 (per mmBtu). With liquefaction and shipping costs of US$6.50, arbitrage margins are now negative.
Over the longer term we expect a stable and low WTI-Brent spread as U.S. domestic inventories return to historical levels. We may see an uptick in arbitrage-driven trading until that happens.
I fully expect smaller places to become more conservative and larger places to become more Democratic, if you believe geographic sorting / arbitrage is happening, then where people live and how they live is increasingly important in predicting their views on politics.
If the deal is successfully completed, (institutional holders) will make the arbitrage spread and come out long the acquiring company, and if the deal is blocked, they may lose a little bit in the short run, but they would believe that they would make money as the stock realizes its intrinsic value.
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Translations for Arbitrage
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"Arbitrage." Definitions.net. STANDS4 LLC, 2024. Web. 7 May 2024. <https://www.definitions.net/definition/Arbitrage>.
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