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arbitrage

arbitrage

8 8.2
Buying and selling the same asset at the same time in different markets to profit from small price differences
  • noun
  • /ˈɑːrbɪtrɑːʒ/
  • Specialized
translation icon : arbitraje
  • The trader identified an arbitrage opportunity between two exchanges, buying low on one and selling high on the other.
  • arbitrage pricing
  • arbitrage opportunities
  • arbitrage between markets

Once they got bots trading, usually it's arbitrage, right?

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Examples

  • This should hold on all dates because if it didn't hold, there would be an arbitrage profit opportunity.

  • Now we're going to have kind of a simple arbitrage strategy.

  • Where do you see that, that arbitrage opportunity?

  • Do you know, Nick made $10 million doing arbitrage in a week?

  • We do a lot of arbitrage, so we do have a high volume.

  • This is essentially an arbitrage of interest rates.

  • First, to what extent do global banks practice regulatory arbitrage in their foreign activities?

    Academic text (2018)
  • So there is a potential arbitrage here to buy APE and sell AMC.

  • Variation in the stringency of bank regulation across countries has created regulatory arbitrage opportunities.

    Academic text (2018)
  • We tested each daily price series for 190 market pairs representing arbitrage points in the national pipeline network.

    Academic text (1993)

Compounds

risk arbitrage
  • Specialized
1 9.9

Buying the target's shares and selling the buyer's shares to profit if a takeover succeeds, but risky if it fails

takeover arbitrage
  • Specialized
9.9

Buying shares of a company being bought and selling the buyer's shares to profit, with risk if deal fails

How Profitable

arbitrage
  • Specialized
8 8.2
scalping
  • US
2 7.2
resale
21 3.2

Surface Forms

arbitrage singular
arbitrages plural

Etymology

The word arbitrage comes from the Latin word arbiter, which means 'judge' or someone who 'decides', and from an old French word for 'judgment'. So arbitrage is like judging prices: you spot a price difference and buy in one place and sell in another to make a small profit.