arbitrage

/ˈɑrbɪtrɑʒ/
verb
  1. To engage in arbitrage; to buy and sell the same asset in different markets to profit from price differences.
    • He made a living by arbitraging small price differences in foreign currencies.
    • Large investment firms often arbitrage between bond markets in different countries.
    • The software is designed to automatically arbitrage price gaps in cryptocurrency exchanges.
noun
  1. The practice of buying something (like a currency, stock, or commodity) in one market and immediately selling it in another market at a higher price, in order to profit from the price difference.
    • The rise of high-speed computers has made currency arbitrage much more competitive.
    • She studied arbitrage opportunities in the gold market before making any trades.
    • Traders use arbitrage to make money from small price differences between stock exchanges.
  2. A situation or opportunity where such a price difference exists and can be exploited for profit.
    • The price gap between the two markets created a clear arbitrage.
    • Most arbitrages disappear within seconds as traders act on them.
    • He quickly spotted an arbitrage in the price of oil futures.
What does "arbitrage" mean? | whatsthatwordmean | whatsthatwordmean