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

Lasry feels there's an arbitrage play with PBR. —Alex Sherman,contessa Brewer, CNBC, 25 Sep. 2025

In 1998, hedge fund Long-Term Capital Management was bailed out after its highly leveraged bets on bond arbitrage went belly up after the Russian debt default. —Alex Pron, Forbes.com, 19 Sep. 2025

Verb

Personal shopping services, buying cooperatives or even friends and family networks could arbitrage these differences, providing wealthy customers access to the lower prices while splitting the savings. —Aradhna Krishna, The Conversation, 14 Oct. 2025

In theory, that fragmentation presents an opportunity to arbitrage pricing discrepancies. —Bloomberg, Mercury News, 28 July 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