arbitrage

1 of 2

noun

ar·​bi·​trage ˈär-bə-ˌträzh 

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

2 of 2

verb

arbitraged; arbitraging

intransitive verb

: to engage in arbitrage

Examples of arbitrage in a Sentence

Recent Examples on the Web

Noun

As a result, traditional labor arbitrage is being replaced by something more strategic: technology arbitrage. —Preston Fore, Fortune, 10 July 2025

Cheap labor arbitrage has been replaced by automation arbitrage, and there is now a race to deploy smart agents that deliver more output at marginal cost. —Baris Kavakli, Forbes.com, 3 July 2025

Verb

So long as that dynamic endures, political actors will arbitrage growth for personal gain ensuring that the benefits of economic growth leak out through privileged channels. —Dave Birnbaum, Forbes.com, 4 July 2025

Supply chain players, meanwhile, will find opportunities to arbitrage tariff differentials once Trump applies uniquely high rates to China but lower rates to other Asian exporters. —Evan A. Feigenbaum, Forbes, 5 Jan. 2025

Word History

Etymology

Noun

borrowed from French, literally, "decision-making, judgment," going back to Old French, "judgment pronounced by an arbiter," from arbitrer "to pass judgment" (borrowed from Latin arbitrārī "to consider, judge, decide," verbal derivative of arbitr-, arbiter "onlooker, arbiter") + -age -age

First Known Use

Noun

1875, in the meaning defined at sense 1

Verb

1857, in the meaning defined above

Rhymes for arbitrage

• camouflage
• entourage
• sabotage
• vicarage
• barrage
• collage
• corsage
• dressage
• garage
• massage
• mirage
• montage

Legal Definition

arbitrage

noun

ar·​bi·​trage ˈär-bə-ˌträzh 

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

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

Etymology

Noun

French, literally, arbitration, decision-making