meaning of Arbitrage

Arbitrage meaning in General Dictionary

Judgment by an arbiter authoritative determination

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  • rehearse arbitrage, like in the stock exchange
  • some sort of hedged investment meant to capture slight differences in price; if you find an improvement when you look at the price of some thing on two various markets the arbitrageur simultaneously buys within cheap and sells on higher cost
  • Judgment by an arbiter; authoritative dedication.
  • A traffic in bills of change (see Arbitration of Exchange); also, a traffic in shares which bear differing values within same amount of time in different markets.

Arbitrage meaning in Economics Dictionary

Buying a secured item within one marketplace and at the same time attempting to sell an identical asset in another marketplace at a higher cost. Often these are going to be identical possessions in numerous areas, by way of example, shares in a company listed on the London stock market and New York Stock Exchange. Often the assets being arbitraged is going to be identical in a far more complicated method, like, they will be differing types of economic securities being each subjected to identical dangers. Some kinds of arbitrage are totally risk-free-this is pure arbitrage. Including, if EUROS can be obtained more inexpensively in bucks in London than in New York, arbitrageurs (also known as arbs) will make a risk-free gain buying euros in London and selling the same level of all of them in ny. Options for pure arbitrage are becoming uncommon recently, partially due to the GLOBALISATION of FINANCIAL MARKETS. These days, some so named arbitrage, a lot of it done by hedge resources, requires assets having some similarities but they are not identical. This is simply not pure arbitrage and that can be definately not risk free.

Arbitrage meaning in Finance Dictionary

The multiple buy and sale of two different, but closely relevant, securities to benefit from a disparity within their costs. Instead, the purchase and sale of the same safety in various markets.Originally, most arbitrage occurred in the foreign exchange: arbitrageurs would purchase in one single marketplace and sell in another. These days, the practice is applicable equally to products, futures and stocks. By way of example, if an organization is dual-listed on two stock exchanges therefore the prices are at variance, an arbitrageur has actually an opportunity to purchase in a single market and sell in another ahead of the disparity is closed. In an ideal marketplace, such opportunities must not occur; once they do, they normally are shut rapidly.

Arbitrage meaning in Law Dictionary

n investment strategy relating to the simultaneous acquisition and sale of two POSSESSIONS in order to capitalize on tiny price or rate discrepancies. The intent regarding the strategy is always to produce a profit with the very least number of DANGER; real arbitrage is riskfree. See in addition HEDGE, LONG ARBITRAGE, PURE ARBITRAGE,QUASWe ARBITRAGE, BRIEF ARBITRAGE, SPECULATION,YIELD ENHANCEMENT.

Arbitrage meaning in Etymology Dictionary

"exercise of the function of an arbitrator," late 15c., from Old French arbitrage "arbitration, judgment," from arbitrer "to arbitrate, judge," from Late Latin arbitrari, from Latin arbiter (see arbiter).

Arbitrage meaning in Business Dictionary

Profiting from variations in costs or yields in different areas. 'Arbitrageurs' get a commodity, currency, protection or other monetary tool within one destination and immediately sell it at an increased price to a ready purchaser at another spot finishing both stops associated with transaction usually within a couple of seconds. Arbitrage is an enhanced kind of non-speculative, risk-free betting because it requires transactions where returns and costs are definite, fixed, and known. See also conjecture.

Arbitrage - German to English


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Arbitrage - French to English


Arbitrage meaning in General Dictionary

(letter.) Judgment by an arbiter; authoritative determination.

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  • (n.) A traffic in bills of change (see Arbitration of Exchange); also, a traffic in shares which bear differing values simultaneously in various areas.

Sentence Examples with the word Arbitrage

Of the numerous works relating to the reign of the heroic Stephen Bathory, 1 5751586, Ignaty Janicki's Acta historica res gestas Stephani Bathorei illustrantia (Cracow, 1881), and Paul Pierling's Un arbitrage pontifical entre la Pologne et la Russie 1581-1582 (Brussels, 1890) can be recommended.

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