Definition of arbitrage
(Entry 1 of 2)
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
arbitrage
verb
arbitraged; arbitraging
Definition of arbitrage (Entry 2 of 2)
: to engage in arbitrage
Keep scrolling for more
Keep scrolling for more
Test Your Vocabulary
February 2021 Words of the Day Quiz
-
- Which is a synonym of perdure?

Test your visual vocabulary with our 10-question challenge!
TAKE THE QUIZ
Spell words. Make bears.
TAKE THE QUIZLove words? Need even more definitions?
Merriam-Webster unabridged
Words at Play
Ask the Editors
Share arbitrage
Time Traveler for arbitrage
The first known use of arbitrage was in 1857
See more words from the same year