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Arbitrageur: meaning, definitions and examples

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arbitrageur

 

[ ˌɑːrbɪˈtrɑːʒər ]

Noun
Context #1 | Noun

financial markets

An arbitrageur is a trader who engages in arbitrage, which is the simultaneous buying and selling of an asset in different markets to take advantage of price differences. This often involves exploiting inefficiencies in the market to secure a profit. Arbitrageurs play a vital role in maintaining market equilibrium, as their actions help to ensure that prices do not stray too far from their theoretical levels of value. They can operate across various financial instruments, including stocks, bonds, currencies, and derivatives.

Synonyms

investor, speculator, trader.

Examples of usage

  • The arbitrageur made a quick profit by buying the stock in one market and selling it in another.
  • In volatile markets, the arbitrageur's strategies can lead to significant gains.
  • Many arbitrageurs use sophisticated algorithms to identify and exploit price discrepancies.

Translations

Translations of the word "arbitrageur" in other languages:

🇵🇹 arbitragista

🇮🇳 मध्यस्थता करने वाला

🇩🇪 Arbitrageur

🇮🇩 arbitrajer

🇺🇦 арбітражник

🇵🇱 arbitrażysta

🇯🇵 アービトラージャー

🇫🇷 arbitragiste

🇪🇸 arbitrajista

🇹🇷 arbitrajcı

🇰🇷 차익 거래자

🇸🇦 مُتَاجِر

🇨🇿 arbitrážník

🇸🇰 arbitrážník

🇨🇳 套利者

🇸🇮 arbitražni trgovec

🇮🇸 arbitragari

🇰🇿 арбитор

🇬🇪 არ_bitრაჟერი

🇦🇿 arbiter

🇲🇽 arbitrajista

Etymology

The term 'arbitrageur' derives from the word 'arbitrage', which has its roots in the Latin word 'arbiter', meaning 'judge' or 'witness'. Originally, arbitrage was used in legal contexts to refer to the act of making a judgment or decision. By the late 19th century, the term began to be associated with financial practices, particularly in reference to activities in the markets. As financial markets developed, the practice of arbitrage became more prominent, leading to the emergence of the arbitrageur as a distinctive role within trading. Over time, the concept has evolved with the advent of modern finance and technology, allowing arbitrageurs to leverage complex strategies and tools to identify and profit from inefficiencies across global markets.

Word Frequency Rank

Ranking #39,754, this word is encountered relatively rarely in everyday English. It might appear in literary works or specialized texts but isn't essential for general communication.