arbitrage

Word family

ar·bi·trage /ˈɑːbətrɑːʒ $ ˈɑːr-/ noun [uncountableU] technical

BFSthe process of buying something such as raw materials or currency in one place and selling them immediately in another place in order to make a profit from the difference in prices 套利，套汇，套购

—arbitrageur /ˌɑːbətrɑːˈʒɜː $ ˌɑːrbətrɑːˈʒɜːr/ (also arbitrager British EnglishBrE /ˈɑːbətrɑːʒə $ ˈɑːrbətrɑːʒər/) noun [countableC]

Examples from the Corpus

arbitrage• This delayed cash flow will alter the net present value of an arbitrage transaction which involves buying shares.• He rejected stale prices as a cause, but found some support for arbitrage risk as an explanation of mispricing.• When they allowed for four different levels of transactions costs, they concluded that many potential opportunities for profitable arbitrage remained.• Our investors always took risk; high-wire act would have been more accurate than arbitrage.• In Chapter 6 the variant known as the arbitrage pricing model will be presented.• The justification for this assumption is that the arbitrage transaction is riskless, and so repayment is guaranteed.• This arbitrage opportunity raises the attractiveness of sterling and reduces the attractiveness of dollars.• Markets typically include a provision for resolving disagreements by returning the product or through arbitrage in other cases.

From Longman Business Dictionary

arbitragear·bi·trage /ˈɑːbətrɑːʒˈɑːr-/ noun [uncountableU]FINANCE

1buying something such as a raw material or currency in one place and selling it immediately in another, in order to make a profit from price differences between the two places

Analysts attributed the activity to arbitrage buying: traders bought cocoa in New York to sell at a profit in London.

2buying and selling shares of two companies involved, or that may be involved, in a takeover, in order to make a profit from differences in the share values of the two companies

The company incurred losses in risk arbitrage - or takeover-stock speculation - arising from last year’s slump in U.S. merger activity.

→ exchange arbitrage

Origin arbitrage

(1800-1900) French arbitrer, from Latin arbitrari; → ARBITRATE

ar·bi·trage noun

Chinese

Syllable

Corpus