Definitions

1. noun

the practice of taking advantage of a price difference between two or more markets by buying in one market and selling in another market.

“The hedge fund’s success was largely due to its sophisticated arbitrage strategy.”

2. noun

a person or company that practices arbitrage.

“The arbitrageur made a significant profit from the fluctuations in the currency market.”

3. verb

to engage in arbitrage, especially in a financial market.

“The company arbitrated between the two rival bidders, selecting the highest bidder.”