arbitrage

English

Etymology

Unadapted borrowing from French arbitrage, from arbitrer (“to arbitrate”); see arbitrate.

Pronunciation

• (General American) IPA^(key): /ˈɑɹbɪˌtɹɑʒ/, /ˈɑɹ.bɪ.tɹɪd͡ʒ/

• Audio (US):

  (file)

• Rhymes: -ɑːʒ, -ɪdʒ
• Hyphenation: ar‧bi‧trage

Noun

arbitrage (countable and uncountable, plural arbitrages)

1. (finance) A market activity in which a security, commodity, currency or other tradable item is bought in one market and sold simultaneously in another, in order to profit from price differences between the markets.
   • a. 1973, Benjamin Graham, The Intelligent Investor‎^[1], HarperCollins, published 2003, page 174:

     But in recent years, for reasons we shall develop later, the field of "arbitrages and workouts" became riskier and less profitable.

2. (archaic) Arbitration.

Derived terms

• arbitrageable
• arbitrage pricing model
• arbitrage pricing theory
• arbitrager
• arbitrageur
• arbitragist
• geoarbitrage
• rumortrage

 

Related terms

• arbiter
• arbitrable
• arbitrary
• arbitrate
• arbitration
• arbitrator

 

Translations

market activity

• Chinese:

  Mandarin: 套利 (zh) (tàolì)

• Czech: arbitráž f
• Danish: please add this translation if you can
• Finnish: arbitraasi
• French: arbitrage (fr) m
• Irish: arbatráiste m
• Japanese: 鞘取り (さやとり, sayatori)
• Polish: arbitraż (pl) m, rozjemstwo n
• Portuguese: arbitragem (pt) f

Further reading

• “arbitrage”, in Webster’s Revised Unabridged Dictionary, Springfield, Mass.: G. & C. Merriam, 1913, →OCLC.
• “arbitrage”, in The Century Dictionary […], New York, N.Y.: The Century Co., 1911, →OCLC.

Verb

arbitrage (third-person singular simple present arbitrages, present participle arbitraging, simple past and past participle arbitraged)

1. (intransitive, finance) To employ arbitrage
   • 1961, Maurece Schiller, Fortunes in Special Situations in the Stock Market‎^[2], page iv:

     He has arbitraged by purchasing in one market and simultaneously selling the same or similar merchandise in another market.

2. (transitive, finance) To engage in arbitrage in, between, or among
   • 2001, Frederic S. Mishkin, Prudential Supervision: What Works and what Doesn't, page 98:

     Indeed, as banks become more adept at internal risk classifications, their incentives to arbitrage economic and regulatory capital can only increase

Dutch

Etymology

Unadapted borrowing from French arbitrage.

Pronunciation

• IPA^(key): /ˌɑr.biˈtraː.ʒə/

• Audio:

  (file)

• Hyphenation: ar‧bi‧tra‧ge
• Rhymes: -aːʒə

Noun

arbitrage f (plural arbitrages)

1. (sports) refereeing
2. (dispute resolution) arbitration

Derived terms

• arbitragecommissie

Descendants

• → Indonesian: arbitrase

French

Etymology

From arbitrer +‎ -age.

Pronunciation

• IPA^(key): /aʁ.bi.tʁaʒ/

• Audio:

  (file)

Noun

arbitrage m (plural arbitrages)

1. arbitration (the act or process of arbitrating)
2. (finance) arbitrage
3. (economics) trade-off
4. (sports) refereeing

Related terms

• arbitre
• arbitrer

Descendants

• → Dutch: arbitrage
• → English: arbitrage
• → Polish: arbitraż
• → Romanian: arbitraj
• → Russian: арбитра́ж (arbitráž)
  • → Mongolian: арбитраж (arbitraž)
• → Turkish: arbitraj
• → Ukrainian: арбітра́ж (arbitráž)

Further reading

• “arbitrage”, in Trésor de la langue française informatisé [Digitized Treasury of the French Language], 2012.