arbitrage
Say it: AH-bih-trahzh /ˈɑrbɪtrɑʒ/ · noun
What “arbitrage” means
Buying cheaply in one market and selling higher in another.
More precisely: Profiting from a price difference for the same thing in different markets.
Example: “He made money through arbitrage, buying sneakers locally and reselling them abroad.”
When to use it
In trading discussions, when someone profits from different prices for the same item in separate markets.
Similar words
spread trading, price-gap trading
Where it comes from
From French arbitrage, from arbitrer, "to judge."
Quick check
You buy identical silver coins cheaply in one market and immediately sell them for more in another. That's…
arbitrage or a dividend?
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arbitrage
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