arbitrage
1 of 2noun
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 2verb
arbitraged; arbitraging
intransitive verb
: to engage in arbitrage
Example Sentences
Recent Examples on the Web
Scott Nover, Quartz, 15 Aug. 2022 Keiichi Shibahara went from making pocket money on wine arbitrage to building Japan’s most valuable hospice care firm Amvis. James Simms, Forbes, 8 June 2022 Another reason Chanos is instituting the arbitrage trade? Lucy Brewster, Fortune, 25 Aug. 2022 Redbox shares were trading around $6 when the sale was announced, but rather than collapse, the stock went up, to as high as $18, as retail traders and arbitrage opportunists fought to manipulate the stock and make a buck off the sale. Scott Nover, Quartz, 15 Aug. 2022 The Southeast Asian tech ecosystem, in addition to labor arbitrage, is also characterized by market valuations that are 30% to 40% lower than those of the U.S. and lower regional startup costs. Kanin Asva, Forbes, 15 Aug. 2022 Traders who engage in a process called arbitrage are able to make a quick profit by exploiting fluctuations in either asset — creating an incentive to hold Terra's value steady at $1. Allison Morrow, CNN, 12 May 2022 But in a crisis the distinctions between what is meant to be super-low-risk hedging, low-risk arbitrage and outright speculation vanish. James Mackintosh, WSJ, 10 Mar. 2022 Other considerations, Kaplan said, include reducing costs, refinancing existing debt and multiple arbitrage — the latter a term describing how private equity funds try to acquire firms trading below their intrinsic value. Chris Morran, ProPublica, 8 Aug. 2022 Tim Fernholz, Quartz, 8 Aug. 2022 CEOs may arbitrage the best and cheapest job seekers across the country—and potentially globally. Jack Kelly, Forbes, 28 June 2021 Now, before this comes off as a tribute to arbitrage and saving pennies on the margins for billionaire owners, a reminder that what makes the Dodgers so imposing and the Giants potentially so is smarts stacked atop resources. Gabe Lacques, USA TODAY, 30 Apr. 2021 One advantage of ETFs is that shares can be readily created and redeemed to arbitrage away any discount or premium, which could greatly broaden their appeal. Telis Demos, WSJ, 12 Apr. 2021 Localized cancer, headline risk—call it what you will, these episodes create wrinkles in the investment time-space continuum that long-term investors can use to arbitrage between perception and reality. Adam Seessel, Fortune, 19 Nov. 2019 Were this only a matter of firms arbitraging better rates and swapping back to dollars, the Americans would be dominated by banks. Washington Post, 3 Apr. 2019 One explanation is that foreigners have direct access to the market, and so large price gaps can be arbitraged away quickly. Nathaniel Taplin, WSJ, 18 Sep. 2018 One risk is that, as local investors clamour to buy them, CDRs will trade at a huge premium to their foreign counterparts. Because of capital controls, there is no channel for arbitraging between onshore and offshore markets. The Economist, 10 May 2018 See More
Noun
While arbitrage traders were shorting the stock to cash out, meme traders stepped in trying to pump up the stock, squeeze out the shorts, and cash out before the stock price returned to earth. Scott Nover, Quartz, 15 Aug. 2022 Keiichi Shibahara went from making pocket money on wine arbitrage to building Japan’s most valuable hospice care firm Amvis. James Simms, Forbes, 8 June 2022 Another reason Chanos is instituting the arbitrage trade? Lucy Brewster, Fortune, 25 Aug. 2022 Redbox shares were trading around $6 when the sale was announced, but rather than collapse, the stock went up, to as high as $18, as retail traders and arbitrage opportunists fought to manipulate the stock and make a buck off the sale. Scott Nover, Quartz, 15 Aug. 2022 The Southeast Asian tech ecosystem, in addition to labor arbitrage, is also characterized by market valuations that are 30% to 40% lower than those of the U.S. and lower regional startup costs. Kanin Asva, Forbes, 15 Aug. 2022 Traders who engage in a process called arbitrage are able to make a quick profit by exploiting fluctuations in either asset — creating an incentive to hold Terra's value steady at $1. Allison Morrow, CNN, 12 May 2022 But in a crisis the distinctions between what is meant to be super-low-risk hedging, low-risk arbitrage and outright speculation vanish. James Mackintosh, WSJ, 10 Mar. 2022 Other considerations, Kaplan said, include reducing costs, refinancing existing debt and multiple arbitrage — the latter a term describing how private equity funds try to acquire firms trading below their intrinsic value. Chris Morran, ProPublica, 8 Aug. 2022 Verb
The authors attribute this problem in part to the profit fees paid by winning bettors, which reduce the incentive for traders to arbitrage between contracts and improve their accuracy. Tim Fernholz, Quartz, 8 Aug. 2022 CEOs may arbitrage the best and cheapest job seekers across the country—and potentially globally. Jack Kelly, Forbes, 28 June 2021 Now, before this comes off as a tribute to arbitrage and saving pennies on the margins for billionaire owners, a reminder that what makes the Dodgers so imposing and the Giants potentially so is smarts stacked atop resources. Gabe Lacques, USA TODAY, 30 Apr. 2021 One advantage of ETFs is that shares can be readily created and redeemed to arbitrage away any discount or premium, which could greatly broaden their appeal. Telis Demos, WSJ, 12 Apr. 2021 Localized cancer, headline risk—call it what you will, these episodes create wrinkles in the investment time-space continuum that long-term investors can use to arbitrage between perception and reality. Adam Seessel, Fortune, 19 Nov. 2019 Were this only a matter of firms arbitraging better rates and swapping back to dollars, the Americans would be dominated by banks. Washington Post, 3 Apr. 2019 One explanation is that foreigners have direct access to the market, and so large price gaps can be arbitraged away quickly. Nathaniel Taplin, WSJ, 18 Sep. 2018 One risk is that, as local investors clamour to buy them, CDRs will trade at a huge premium to their foreign counterparts. Because of capital controls, there is no channel for arbitraging between onshore and offshore markets. The Economist, 10 May 2018 See More 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
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
- adverting
- adverting (to)
- adverting to
- advertisable
- advertise
- advertised
- advertisement
- advertisement curtain
- advertisements
- advertiser
- advertisers
- advertises
- advertising
- advertising agency
- advertisings
- advertized
- advertizements
- advertizes
- advertizing
- advertorial
- advertorials
- adverts
- adverts (to)
- adverts to
- advice