Arbitrage: meaning, definitions and examples
๐ฑ
arbitrage
[ หรคrbษชหtrรคzh ]
financial trading
Arbitrage is the simultaneous buying and selling of an asset in different markets to exploit price differences. Investors engage in arbitrage to profit from the discrepancies in prices that may exist in different locations or formats. This practice ensures that prices do not deviate significantly from their fair market value for long periods. Arbitrage opportunities often arise in financial markets, including stocks, bonds, and currencies.
Synonyms
exploitation, hedging, speculation.
Examples of usage
- He made a profit through arbitrage in currency exchange.
- Arbitrage between different stock exchanges can be quite lucrative.
- She specialized in arbitrage trading in commodity markets.
Translations
Translations of the word "arbitrage" in other languages:
๐ต๐น arbitragem
๐ฎ๐ณ เคฎเคงเฅเคฏเคธเฅเคฅเคคเคพ
๐ฉ๐ช Arbitrage
๐ฎ๐ฉ arbitrase
๐บ๐ฆ ะฐัะฑัััะฐะถ
๐ต๐ฑ arbitraลผ
๐ฏ๐ต ใขใผใใใฉใผใธ
๐ซ๐ท arbitrage
๐ช๐ธ arbitraje
๐น๐ท arbitraj
๐ฐ๐ท ์ค์ฌ
๐ธ๐ฆ ุชุญููู
๐จ๐ฟ arbitrรกลพ
๐ธ๐ฐ arbitrรกลพ
๐จ๐ณ ๅฅๅฉ
๐ธ๐ฎ arbitraลพa
๐ฎ๐ธ gerning
๐ฐ๐ฟ ะฐัะฑะธััะฐะถ
๐ฌ๐ช แแ _bitrazhi
๐ฆ๐ฟ arbitraj
๐ฒ๐ฝ arbitraje
Etymology
The term 'arbitrage' originates from the French word 'arbitre,' meaning 'judge' or 'referee.' It is derived from the Latin 'arbitrare' which translates to 'to judge' or 'to consider.' The usage of the word in economic and financial contexts dates back to the early 19th century, acquiring its modern connotation as the practice of taking advantage of price differentials in different markets. Its application has grown significantly alongside the development of global financial markets and technology, which has made it easier to execute trades across various exchanges almost instantaneously. Over the years, arbitrage has evolved, encompassing numerous strategies and forms, further solidifying its role within finance and economics.
Word Frequency Rank
Positioned at #20,572, this word is part of extensive vocabulary. It's relatively rare in general usage but may be important in specific fields or formal writing.
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- 20569 semicircle
- 20570 crediting
- 20571 inclosure
- 20572 arbitrage
- 20573 impeccable
- 20574 buttoned
- 20575 rehearse
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