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

  1. 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

  2. arbitrageverb

    practice arbitrage, as in the stock market

GCIDE

  1. 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

  1. arbitragenoun

    The practice of quickly buying and selling foreign currencies in different markets in order to make a profit

  2. 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

  3. arbitragenoun

    Any market activity in which a commodity is bought and then sold quickly, for a profit which substantially exceeds the transaction cost

  4. arbitrageverb

    To employ arbitrage

  5. arbitrageverb

    To engage in arbitrage in, between, or among

  6. Etymology: From arbitrage, from arbitrer; see arbitrate.

ChatGPT

  1. arbitrage

    Arbitrage is a financial strategy where an individual or entity takes advantage of price differences for the same asset in different markets or in different forms. This is done by simultaneously buying at a lower price in one market and selling at a higher price in another market, with the aim of making a profit without taking any significant risk. This strategy is commonly used in securities, commodities, and foreign exchange trading. It helps to maintain price efficiency in the markets.

Webster Dictionary

  1. Arbitragenoun

    judgment by an arbiter; authoritative determination

  2. 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

  3. Etymology: [F., fr. arbiter to give judgment, L. arbitrari.]

Wikidata

  1. 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

  1. arbitrage

    The referring commercial disputes to the arbitration of two or more indifferent persons.

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Numerology

  1. Chaldean Numerology

    The numerical value of Arbitrage in Chaldean Numerology is: 3

  2. Pythagorean Numerology

    The numerical value of Arbitrage in Pythagorean Numerology is: 9

Examples of Arbitrage in a Sentence

  1. Niels Lammerts van Bueren:

    The deal is so big that there are not enough arbitragers that can keep the spread in a tight ranges, i don't think anyone wants to go into the arbitrage too big so the spread could widen further.

  2. Justin Onuekwusi:

    It’s a simple case of financial arbitrage being left open by the market.

  3. Michel Rauchs:

    Now you have a way to essentially transfer your dollars in and out of exchanges pretty much instantly, which of course makes it a lot easier to do arbitrage.

  4. Brent McGoldrick:

    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.

  5. Alberto Forchielli:

    The underlying assets (of Wanda Commercial) are good and the stock in Hong Kong has not moved [compared with its listing price]...this is an arbitrage written in the stars, there was a real rush to join.

Popularity rank by frequency of use

Arbitrage#10000#33468#100000

Translations for Arbitrage

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"Arbitrage." Definitions.net. STANDS4 LLC, 2024. Web. 27 Apr. 2024. <https://www.definitions.net/definition/Arbitrage>.

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