arbitrage

noun/ˈɑrbɪtrɑʒ/

Frequency rank: #15,507 most common English word

Meaning

the practice of buying something in one market and selling it in another to profit from a price difference.

Illustration for the English word “arbitrage”

Example sentence

The trader made a profit through arbitrage by buying stocks cheaply in one market and selling them at a higher price in another.

Synonyms & related words

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