Arbitraged: meaning, definitions and examples

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arbitraged

 

[ ˈär-bə-träjd ]

Verb
Context #1 | Verb

finance, market

Arbitraged refers to the act of taking advantage of a price difference between two or more markets. It involves the simultaneous purchase and sale of an asset to profit from the imbalance in the price. This practice is commonly used in trading, where investors buy a security in one market while selling it in another, capitalizing on the variation in price. Arbitrage opportunities often arise due to inefficiencies in the market and can lead to quick profits if executed correctly.

Synonyms

capitalized, exploited, reaped.

Examples of usage

  • The trader arbitraged stocks between the New York and London markets.
  • Arbitraged gold prices across different exchanges to maximize profit.
  • Investing strategies often include arbitraged positions to reduce risk.
  • He successfully arbitraged currency values to increase his profits.

Translations

Translations of the word "arbitraged" in other languages:

🇵🇹 arbitrado

🇮🇳 बीचबाज़ी किया हुआ

🇩🇪 arbitriert

🇮🇩 arbitrasikan

🇺🇦 арбітражний

🇵🇱 arbitrażowany

🇯🇵 仲裁された

🇫🇷 arbitré

🇪🇸 arbitrajeado

🇹🇷 arbitre edilmiş

🇰🇷 중재된

🇸🇦 مُحَكَّم

🇨🇿 arbitrovaný

🇸🇰 arbitrovaný

🇨🇳 仲裁的

🇸🇮 arbitriran

🇮🇸 gerðar

🇰🇿 арбитраждалған

🇬🇪 არ_bitრაჟული

🇦🇿 arbitraj edilmiş

🇲🇽 arbitrajeado

Etymology

The term 'arbitrage' originates from the French word 'arbitrer', meaning to judge or decide. The root can be traced back to the Latin 'arbitrari', meaning to think, consider, or have an opinion. In finance, the concept emerged in the early 18th century as market participants began to recognize the potential for profit from price discrepancies. As markets evolved, the relevance of arbitrage grew with the introduction of new trading avenues and technological advancements, leading to more complex strategies. Nowadays, arbitrage is a sophisticated practice commonly seen in markets with high liquidity, where traders constantly seek to exploit variances across different platforms, instruments, or geographical locations.