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arb

arb

1 9.9
A computer program that finds and makes quick trades across markets to profit from small price differences
  • noun
  • /ɑrb/
  • Specialized
: programa de arbitraje
  • After the outage, the team checked whether their arb had executed any unintended cross‑exchange trades.

Examples

  • The new arb software can execute trades in milliseconds.

  • Hedge funds deploy specialized arbs to exploit tiny, short-lived inefficiencies in cryptocurrency markets.

  • The exchange's arb detected a price gap and placed trades across three markets.

  • Many traders rely on an arb to maximize their profits.

  • The trader used an arb to exploit the price differences between the two exchanges.

  • This new arb algorithm can quickly identify profitable trading opportunities.

  • Investors are excited about the potential of this automated arb system to enhance their portfolio.

Surface Forms

arb singular
arbs plural

Etymology

Arb is also used for a computer program and comes from the same roots arbitrageur and arbiter meaning 'judge'. A program called an arb 'judges' prices automatically, buying where a price is low and selling where it is high to earn a small, fast profit.