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
Examples of arbitrage in a Sentence
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Bill Stone, Forbes, 2 Nov. 2024
Alternatively, it could be designed to exploit arbitrage opportunities or benefit from specific macroeconomic events.
—Christopher Mizer, Forbes, 31 Oct. 2024
Robin Niblett, Foreign Affairs, 30 Mar. 2021
Another potential explanation for these fluctuations is that traders are arbitraging spreads between these assets to make incremental profits on their existing trading strategies.
—Steve Larsen, Forbes, 29 Nov. 2023
See all Example Sentences for arbitrage 
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Noun
This ability to take advantage of time arbitrage has served the company and shareholders well over the years.
—Bill Stone, Forbes, 2 Nov. 2024
Alternatively, it could be designed to exploit arbitrage opportunities or benefit from specific macroeconomic events.
—Christopher Mizer, Forbes, 31 Oct. 2024
Verb
As those who engaged in arbitraging globalization prospered, those anchored to local markets grew increasingly marginalized.
—Robin Niblett, Foreign Affairs, 30 Mar. 2021
Another potential explanation for these fluctuations is that traders are arbitraging spreads between these assets to make incremental profits on their existing trading strategies.
—Steve Larsen, Forbes, 29 Nov. 2023
See all Example Sentences for arbitrage
Dictionary Entries Near arbitrage
Cite this Entry
“Arbitrage.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/arbitrage. Accessed 28 Nov. 2024.
Copy CitationLegal 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
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