meaning of arbitrage
1. Judgment by an arbiter; authoritative determination.
2. A traffic in bills of exchange (see Arbitration of Exchange); also, a traffic in stocks which bear differing values at the same time in different markets.
3. 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
Related Words
arbitrage | arbitrager | arbitrageur |