Arbitrage - Dictionary Definition and Overview

Arbitrage :  (noun)

1: a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price (verb)

1: practice arbitrage, as in the stock market

Based on WordNet 2.0

Arbitrage : \Ar"bi*trage\, n. [F., fr. arbiter to give judgment, L. arbitrari.] 1. Judgment by an arbiter; authoritative determination. [Archaic]

2. (Com) A traffic in bills of exchange (see Arbitration of Exchange); also, a traffic in stocks which bear differing values at the same time in different markets.

Based on WordNet (r) 2.0 (August 2003)
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