Arbitrage

v. (Finance) practice arbitrage in the stock market

n. simultaneous purchase and sale of commodities or financial instruments in various markets to profit from unequal prices without risk (Finance); arbitration, settling of a dispute by a mutually chosen mediator (Archaic)

In economics and finance, arbitrage is the practice of taking advantage of a price differential between two or more markets: a combination of matching deals are struck that capitalize upon the imbalance, the profit being the difference between the market prices. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, a risk-free profit. A person who engages in arbitrage is called an arbitrageur. The term is mainly applied to trading in financial instruments, such as bonds, stocks, derivatives, commodities and currencies.
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Noun
1. 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
(hypernym) investing, investment
(hyponym) risk arbitrage, takeover arbitrage
Verb
1. practice arbitrage, as in the stock market
(hypernym) trade, merchandise
(derivation) arbitrageur, arbitrager, arb
(classification) commerce, commercialism, mercantilism

n. (Finance) arbitrage, simultaneous purchase and sale of commodities to profit from unequal prices; (Archaic) arbitration, settling of a dispute by a mutually chosen mediator

adj. arbitral

n. arbitration, arbitrage; adjudgment, adjudication