arbitrage
v. (Finance) practice arbitrage in the stock market n. simultaneous purchase and sale of commodities or financial instruments in various markets to profit from unequal prices without risk (Finance); arbitration, settling of a dispute by a mutually chosen mediator (Archaic) | ||||
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Arbitrage definition was found in categories: Business & Finance(8) Language, Idioms & Slang(3) Law(1) Encyclopedia(1)
Arbitrage Definition from Business & Finance Dictionaries & Glossaries
| Campbell R. Harvey's Hypertextual Finance Glossary |
Arbitrage
The simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist, but, arbitrage opportunities are often precluded because of transactions costs.
The simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist, but, arbitrage opportunities are often precluded because of transactions costs.
| BASSAM Trade, Real Estate, Mortgage, Fund,Invest, Insurance,& Tax,Terms/abbreviations/defin. |
ARBITRAGE
A financial transaction where an arbitrageur (arb) simultaneously purchases in one market and sells in another where there is a slight price differential. Often it is a full hedge, and therefore, a risk-free transaction. Arbs play an important role in keeping markets liquid and efficient.
A financial transaction where an arbitrageur (arb) simultaneously purchases in one market and sells in another where there is a slight price differential. Often it is a full hedge, and therefore, a risk-free transaction. Arbs play an important role in keeping markets liquid and efficient.
| 2K Group Shipping, Trade, Insurance Dictionary |
Arbitrage
The simultaneous buying and selling of the same commodity or foreign
exchange in two or more markets in order to take advantage of price
differentials.
The simultaneous buying and selling of the same commodity or foreign
exchange in two or more markets in order to take advantage of price
differentials.
| Leasing |
Arbitrage
Simultaneous purchase in one market and sale in another of a security in order to make a profit on relative price differences. The difference between the interest on governmental obligations exempt from federal income tax under the Internal Revenue Code and the yield on securities and obligations that are not exempt from federal income tax in which the proceeds of the governmental obligations are invested.
Simultaneous purchase in one market and sale in another of a security in order to make a profit on relative price differences. The difference between the interest on governmental obligations exempt from federal income tax under the Internal Revenue Code and the yield on securities and obligations that are not exempt from federal income tax in which the proceeds of the governmental obligations are invested.
| Options Trading Glossary |
Arbitrage
The process in which professional traders simultaneously buy and sell similar securities for a profit at theoretically zero risk. Risk in arbitrage occurs when historical relationships that were expected to hold no longer apply, or when expected events like an announced takeover fail to materialize.
The process in which professional traders simultaneously buy and sell similar securities for a profit at theoretically zero risk. Risk in arbitrage occurs when historical relationships that were expected to hold no longer apply, or when expected events like an announced takeover fail to materialize.
| Raynet Business & Marketing Glossary |
Arbitrage
the technique of using different prices on different world stock exchanges to make money by buying in one and selling in another.
the technique of using different prices on different world stock exchanges to make money by buying in one and selling in another.
| A Guide to Futures and Options Market Terminology : English-English |
Arbitrage
The purchase of a commodity against the simultaneous sale of a commodity to profit from unequal prices. The two transactions may take place on different exchanges, between two different commodities, in different delivery months, or between the cash and futures markets. See Spreading .
The purchase of a commodity against the simultaneous sale of a commodity to profit from unequal prices. The two transactions may take place on different exchanges, between two different commodities, in different delivery months, or between the cash and futures markets. See Spreading .
| Sean_Woo's Finance,GIS & Real Estate Glossary |
arbitrage
buying in one market and selling almost simultaneously in another to make a profit
buying in one market and selling almost simultaneously in another to make a profit
Arbitrage Definition from Language, Idioms & Slang Dictionaries & Glossaries
| Webster's Revised Unabridged Dictionary (1913) |
Arbitrage
(n.)
Judgment by an arbiter; authoritative determination.
(n.)
A traffic in bills of exchange (see Arbitration of Exchange); also, a traffic in stocks which bear differing values at the same time in different markets.
(n.)
Judgment by an arbiter; authoritative determination.
(n.)
A traffic in bills of exchange (see Arbitration of Exchange); also, a traffic in stocks which bear differing values at the same time in different markets.
| WordNet 2.0 |
arbitrage
Noun
1. a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price
(hypernym) investing, investment
(hyponym) risk arbitrage, takeover arbitrage
Verb
1. practice arbitrage, as in the stock market
(hypernym) trade, merchandise
(derivation) arbitrageur, arbitrager, arb
(classification) commerce, commercialism, mercantilism
Noun
1. a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price
(hypernym) investing, investment
(hyponym) risk arbitrage, takeover arbitrage
Verb
1. practice arbitrage, as in the stock market
(hypernym) trade, merchandise
(derivation) arbitrageur, arbitrager, arb
(classification) commerce, commercialism, mercantilism
| hEnglish - advanced version |
arbitrage
arbitrage
\ar"bi*trage\ (&?;), n. [f., fr. arbiter to give judgment, l. arbitrari.]
1. judgment by an arbiter; authoritative determination. [archaic]
2. (com) a traffic in bills of exchange (see arbitration of exchange); also, a traffic in stocks which bear differing values at the same time in different markets.
similar words(2)
risk arbitrage
takeover arbitrage
arbitrage
\ar"bi*trage\ (&?;), n. [f., fr. arbiter to give judgment, l. arbitrari.]
1. judgment by an arbiter; authoritative determination. [archaic]
2. (com) a traffic in bills of exchange (see arbitration of exchange); also, a traffic in stocks which bear differing values at the same time in different markets.
similar words(2)
risk arbitrage
takeover arbitrage
Arbitrage Definition from Law Dictionaries & Glossaries
| The 'Lectric Law Library |
Arbitrage
The buying of foreign exchange, securities, or commodities in one market and the simultaneous selling in another market, in terms of a third market. By this manipulation a profit is made because of the difference in the rates of exchange or in the prices of securities or commodities involved.
The buying of foreign exchange, securities, or commodities in one market and the simultaneous selling in another market, in terms of a third market. By this manipulation a profit is made because of the difference in the rates of exchange or in the prices of securities or commodities involved.
Arbitrage Definition from Encyclopedia Dictionaries & Glossaries
| Wikipedia English - The Free Encyclopedia |
Arbitrage
In economics and finance, arbitrage is the practice of taking advantage of a price differential between two or more markets: a combination of matching deals are struck that capitalize upon the imbalance, the profit being the difference between the market prices. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, a risk-free profit. A person who engages in arbitrage is called an arbitrageur. The term is mainly applied to trading in financial instruments, such as bonds, stocks, derivatives, commodities and currencies.
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