Simple Definition of arbitrage
business : the practice of buying something (such as foreign money, gold, etc.) in one place and selling it almost immediately in another place where it is worth more
Full Definition of arbitrage
1 : the nearly simultaneous purchase and sale of securities or foreign exchange in different markets in order to profit from price discrepancies
2 : the purchase of the stock of a takeover target especially with a view to selling it profitably to the raider
Origin of arbitrage
French, from Middle French, arbitration, from Old French, from arbitrer to render judgment, from Latin arbitrari, from arbitr-, arbiter
First Known Use: 1875
Definition of arbitrage
: to engage in arbitrage
First Known Use of arbitrage
Learn More about arbitrage
Britannica.com: Encyclopedia article about "arbitrage"
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