Meaning & use
arbitrage
Last updated
the practice of buying and selling the same asset in different markets at the same time to profit from a difference in price
See it in a sentence
The trader used arbitrage to profit from the price gap between the two stock exchanges.
Currency arbitrage becomes harder as markets grow more efficient.
A note on using this word
A finance term that relies on speed and small price differences; it's considered low-risk compared to typical speculative trading.
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