Arbitrage: meaning, definitions and examples

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arbitrage

 

[ หˆรคrbษชหŒtrรคzh ]

Noun
Context #1 | Noun

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:

๐Ÿ‡ต๐Ÿ‡น arbitragem

๐Ÿ‡ฎ๐Ÿ‡ณ เคฎเคงเฅเคฏเคธเฅเคฅเคคเคพ

๐Ÿ‡ฉ๐Ÿ‡ช Arbitrage

๐Ÿ‡ฎ๐Ÿ‡ฉ arbitrase

๐Ÿ‡บ๐Ÿ‡ฆ ะฐั€ะฑั–ั‚ั€ะฐะถ

๐Ÿ‡ต๐Ÿ‡ฑ arbitraลผ

๐Ÿ‡ฏ๐Ÿ‡ต ใ‚ขใƒผใƒ“ใƒˆใƒฉใƒผใ‚ธ

๐Ÿ‡ซ๐Ÿ‡ท arbitrage

๐Ÿ‡ช๐Ÿ‡ธ arbitraje

๐Ÿ‡น๐Ÿ‡ท arbitraj

๐Ÿ‡ฐ๐Ÿ‡ท ์ค‘์žฌ

๐Ÿ‡ธ๐Ÿ‡ฆ ุชุญูƒูŠู…

๐Ÿ‡จ๐Ÿ‡ฟ arbitrรกลพ

๐Ÿ‡ธ๐Ÿ‡ฐ arbitrรกลพ

๐Ÿ‡จ๐Ÿ‡ณ ๅฅ—ๅˆฉ

๐Ÿ‡ธ๐Ÿ‡ฎ arbitraลพa

๐Ÿ‡ฎ๐Ÿ‡ธ gerning

๐Ÿ‡ฐ๐Ÿ‡ฟ ะฐั€ะฑะธั‚ั€ะฐะถ

๐Ÿ‡ฌ๐Ÿ‡ช แƒแƒ _bitrazhi

๐Ÿ‡ฆ๐Ÿ‡ฟ arbitraj

๐Ÿ‡ฒ๐Ÿ‡ฝ arbitraje

Word origin

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.