What does "arbitrage" mean?
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.
Arbitrage
/ˈɑɹbɪˌtɹɑʒ/ noun, verb
noun, verb ·Uncommon ·Advanced level
Meaning at a glance
- Primary sense: 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.
- Grammar: arbitrage is listed as noun, verb.
- Nearest alternatives: chance, flier, flutter, flyer.
- Useful contrasts: fundamental mispricing, hold, inefficiency.
- Usage evidence: He had been British Consul in Holland, and had seen the workings of the Amsterdam Bourse and the arbitrage business between London and Amsterdam, which was considerable in the middle of the eighteenth century.
How to use "arbitrage"
- Start with the primary definition, then check the part of speech before placing the word in a sentence.
- Compare nearby synonyms to make sure "arbitrage" carries the exact meaning, tone, and strength you need.
- Use the example sentence as a context check. If your sentence uses the word differently, confirm that the grammar still fits.
Meaning check
- Does the word fit the sentence's grammar?
- Does it match the intended tone rather than only the dictionary definition?
- Would a simpler synonym be clearer for the reader?
- Is there enough surrounding context to prevent ambiguity?
Source and review context
This entry combines structured lexical data with WordToolSet review checks. Definitions, examples, synonyms, and usage notes may come from different source tables, so the page is designed to show evidence from more than one angle before you rely on "arbitrage" in a final draft.
If a word has several senses, prefer the sense that matches your sentence's grammar and surrounding context. A correct definition can still be the wrong choice when the sentence needs a different register, emphasis, or level of specificity.
Before you rely on this definition
Read the first definition as a starting point, then check the example, synonyms, and part of speech before treating "arbitrage" as the right word for your sentence.
If your draft is formal, technical, persuasive, or sensitive, compare "arbitrage" with a nearby alternative so the final choice matches both meaning and reader expectation.
Compare nearby meanings
- Use synonyms when you need a softer, stronger, simpler, or more specific word.
- Use antonyms to check the boundary of the meaning and avoid accidental contrast.
- Use the example sentence to confirm the word behaves naturally in context.
- Keep the original wording when a replacement adds complexity without improving precision.
Definition decision workflow
1. Identify the role
Check whether "arbitrage" is acting as noun, verb in your sentence. A definition is only useful when the grammar matches the way the word is being used.
2. Test the nearest option
Compare it with "chance" and other nearby choices to see whether the sentence needs a softer, stronger, or more familiar word.
3. Confirm with context
Use the example sentence below as an evidence check, then read your own sentence out loud to catch tone or rhythm problems.
Review note: Definition pages are checked for source coverage, sentence evidence, synonym support, and editorial insight before they are treated as approval-ready pages. If the evidence is too thin, the page remains available to users but is kept out of the approval-facing indexed inventory.
Final meaning check
Before publishing a sentence with "arbitrage", ask whether the word helps the reader understand the idea faster. A precise word should reduce confusion, not simply make the sentence look more polished.
When the definition, synonym evidence, and example context point in the same direction, the word is usually a safer choice. When they conflict, revise the sentence or choose a clearer alternative.
Definitions
Noun
- 1 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. countable, uncountable
"But in recent years, for reasons we shall develop later, the field of "arbitrages and workouts" became riskier and less profitable."
- 2 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 wordnet
- 3 Arbitration. archaic, countable, uncountable
Verb
- 1 To employ arbitrage intransitive
"He has arbitraged by purchasing in one market and simultaneously selling the same or similar merchandise in another market."
- 2 practice arbitrage, as in the stock market wordnet
- 3 To engage in arbitrage in, between, or among transitive
"Indeed, as banks become more adept at internal risk classifications, their incentives to arbitrage economic and regulatory capital can only increase"
Synonyms
All synonymsAntonyms
Example
"He had been British Consul in Holland, and had seen the workings of the Amsterdam Bourse and the arbitrage business between London and Amsterdam, which was considerable in the middle of the eighteenth century."
Common questions
What is a synonym for "arbitrage"?
Common synonyms include: chance, flier, flutter, flyer, forex arbitrage, fx arbitrage.
How do you use "arbitrage" in a sentence?
He had been British Consul in Holland, and had seen the workings of the Amsterdam Bourse and the arbitrage business between London and Amsterdam, which was considerable in the middle of the eighteenth century.
How do you pronounce "arbitrage"?
Pronounced /ˈɑɹbɪˌtɹɑʒ/.
Etymology
An unadapted borrowing from French arbitrage, from arbitrer (“to arbitrate”); see arbitrate.