Quantcast
Merriam-Webster Logo
  • Dictionary
  • Thesaurus
  • Scrabble
  • Spanish Central
  • Learner's Dictionary
1

arbitrage

play
noun ar·bi·trage \ˈär-bə-ˌträzh\

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

Source: Merriam-Webster's Learner's Dictionary

Full Definition of arbitrage

  1. 1 :  the nearly simultaneous purchase and sale of securities or foreign exchange in different markets in order to profit from price discrepancies

  2. 2 :  the purchase of the stock of a takeover target especially with a view to selling it profitably to the raider

Origin and Etymology 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


2

arbitrage

verb ar·bi·trage

Definition of arbitrage

arbitraged

arbitraging

  1. intransitive verb
  2. :  to engage in arbitrage




Law Dictionary

arbitrage

play
noun ar·bi·trage \ˈär-bə-ˌträzh\

Legal Definition of arbitrage

  1. 1 :  the purchase of a security, commodity, or foreign currency in one market for the purpose of immediately selling it at a higher price in another market

  2. 2 :  the purchase of the stock of a takeover target especially for the purpose of selling it to the raider for a profit



Origin and Etymology of arbitrage

French, literally, arbitration, decision-making


Learn More about arbitrage


Seen and Heard

What made you want to look up arbitrage? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

mysterious, holy, or spiritual

Get Word of the Day daily email!

WORD GAMES

Take a 3-minute break and test your skills!

lavender-fields-in-france

Which of these is a synonym of caesura?

rebellion megillah torrent interruption
Name That Thing

Test your visual vocabulary with our 10-question challenge!

TAKE THE QUIZ
SCRABBLE® Sprint

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ