Arbitrage \Ar"bi*trage\, n. [F., fr. arbiter to give judgment,
L. arbitrari.]
1. Judgment by an arbiter; authoritative determination.
[Archaic]
[1913 Webster]
2. (Com.) A traffic in bills of exchange (see Arbitration of
Exchange).
[1913 Webster]
3. (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.
[PJC]
The Collaborative International Dictionary of English v.0.48
arbitrage
n : 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
v : practice arbitrage, as in the stock market
WordNet (r) 2.0
arbitrage pricing model, arbitrage pricing theory, conversion arbitrage, convertible arbitrage, convertible arbitrage strategy, covered interest arbitrage, index arbitrage, interest arbitrage, merger arbitrage, risk arbitrage, uncovered interest arbitrage
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