arbitrage

Pronunciation: /ˈɑɹbɪˌtɹɑʒ/

Estimated CEFR level: C2 — Proficiency

Estimated from word frequency; not an official CEFR classification.

Definition

  1. noun 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
  2. verb practice arbitrage, as in the stock market

Etymology

An unadapted borrowing from French arbitrage, from arbitrer (“to arbitrate”); see arbitrate.

In classic literature

Semantic network

Broader (hypernyms)
investing
Narrower (hyponyms)
risk arbitrage

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