trading
arbitrage
The simultaneous buying and selling of an asset in different markets to profit from a price difference.
Example
"The trader used arbitrage to buy gold cheaply in London and sell it at a higher price in New York."
💡 Memory Tip
Arbi-TRAGE — think 'triage,' sorting through markets to find the best price.
Etymology
From French 'arbitrer' meaning 'to judge' — originally referred to settling disputes, later to exploiting price discrepancies.
Common Misspellings
arbitragearbitaragearbitrigearbiragearbitarge
Related Terms
See Also
market efficiency