ar·bi·trage
ˈär-bə-ˌträzh 
1
: the nearly simultaneous purchase and sale of securities or foreign exchange in different markets in order to profit from price discrepancies
2
: the purchase of the stock of a takeover target especially with a view to selling it profitably to the raider
Examples of arbitrage in a Sentence
Recent Examples on the Web
Amala Balakrishner, CNBC, 24 July 2025
The deal’s completion is a win for arbitrage traders who were betting on the spread between Hess’s share price and the exchange ratio agreed with Chevron.
—Bloomberg News, Boston Herald, 19 July 2025
Dave Birnbaum, Forbes.com, 4 July 2025
Supply chain players, meanwhile, will find opportunities to arbitrage tariff differentials once Trump applies uniquely high rates to China but lower rates to other Asian exporters.
—Evan A. Feigenbaum, Forbes, 5 Jan. 2025
See All Example Sentences for arbitrage
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Noun
The regulator's recent action has raised questions about the line between arbitrage and market manipulation.
—Amala Balakrishner, CNBC, 24 July 2025
The deal’s completion is a win for arbitrage traders who were betting on the spread between Hess’s share price and the exchange ratio agreed with Chevron.
—Bloomberg News, Boston Herald, 19 July 2025
Verb
So long as that dynamic endures, political actors will arbitrage growth for personal gain ensuring that the benefits of economic growth leak out through privileged channels.
—Dave Birnbaum, Forbes.com, 4 July 2025
Supply chain players, meanwhile, will find opportunities to arbitrage tariff differentials once Trump applies uniquely high rates to China but lower rates to other Asian exporters.
—Evan A. Feigenbaum, Forbes, 5 Jan. 2025
See All Example Sentences for arbitrage
Cite this Entry
“Arbitrage.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/arbitrage. Accessed 29 Jul. 2025.
Copy CitationLegal Definition
arbitrage
noun
ar·bi·trage
ˈär-bə-ˌträzh
1
: the purchase of a security, commodity, or foreign currency in one market for the purpose of immediately selling it at a higher price in another market
2
: the purchase of the stock of a takeover target especially for the purpose of selling it to the raider for a profit
Etymology
Noun
French, literally, arbitration, decision-making
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