Definition, Meaning & Synonyms

arbitrage

Noun

/ˈɑːrbɪtrɑːʒ/

Definition

The simultaneous purchase and sale of an asset in different markets to profit from the difference in the price.

Examples

Investors often engage in arbitrage to capitalize on price differences in various exchanges.
He made a significant profit through arbitrage by buying stocks at a lower price in one market and selling them for a higher price in another.

Meaning

Arbitrage refers to the practice of taking advantage of a price discrepancy between different markets for the same asset. It is commonly used in finance and trading.