Definition of Arbitrage
Ar´bi`trage
n.
1.
Judgment
by
an
arbiter
;
authoritative
determination
.
2.
(Com.)
A
traffic
in
bills
of
exchange
(
see
Arbitration
of
Exchange
).
3.
(Finance)
the
simultaneous
or
near
simultaneous
purchase
and
sale
of
the
same
or
closely
linked
securities
or
commodities
in
different
markets
to
make
a
profit
on
the
(
often
small
)
differences
in
price
.
Related Words
arb
,
arbitrager
,
arbitrageur
,
commerce
,
commercialism
,
mercantilism
,
merchandise
,
trade
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