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ar·bi·trage (är'bĭ-träzh')

  • n. The purchase of securities on one market for immediate resale on another market in order to profit from a price discrepancy.
    intr.v. ar·bi·traged, ar·bi·trag·ing, ar·bi·trag·es
    To be involved in arbitrage.
  • The simultaneous purchase and selling of an asset in order to profit from a differential in the price. This usually takes place on different exchanges or marketplaces. Also known as a "riskless profit".
  • Etymology: French, literally, arbitration, decision-making
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