english word · 2026-08-29
Arbitrage
noun
Meaning
The simultaneous purchase and sale of the same asset in different markets to profit from tiny differences in price. It represents the pursuit of balance and efficiency within a complex system.
Etymology
From the French 'arbitrage', meaning judgment or decision, derived from the Old French 'arbitrer'.
Examples
"The trader noticed a slight price discrepancy between the London and New York exchanges, allowing for a swift arbitrage."
"The company’s strategy relied on geographic arbitrage, sourcing materials where they were abundant and selling where they were scarce."
A new word every day
Get a beautiful english word in your inbox every morning. Free.
Subscribe →