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

1. Practice arbitrage, as in the stock market

Derived forms: arbitraging, arbitraged, arbitrages

See also: arbitrager

Type of: investing, investment, merchandise, merchandize, trade

Encyclopedia: Arbitrage

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