Noun: arbitrage 'aa(r)-bi,traazh
- 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
"The trader made a profit through arbitrage of currency exchange rates"
- Practice arbitrage, as in the stock market
"He arbitraged between different currency markets to make a profit"
Derived forms: arbitraged, arbitraging, arbitrages
Type of: investing, investment, merchandise, merchandize, trade
Encyclopedia: Arbitrage