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Arbitrage (Verb)

Meaning

Practice arbitrage, as in the stock market.

Classification

Verbs of buying, selling, owning.

Examples

  • Hedge funds often try to practice arbitrage by identifying mispriced assets and exploiting the resulting market inefficiencies for profit.
  • Market makers can earn money by arbitrage, buying securities at a low price and immediately reselling them for a higher price.
  • Arbitrage opportunities arise when the same stock is trading at different prices in two separate markets, allowing traders to profit from the difference.
  • A common strategy for practicing arbitrage involves buying convertible bonds while simultaneously short-selling the underlying stock to profit from price discrepancies.
  • Increasingly sophisticated algorithms have enabled investors to practice arbitrage by rapidly identifying and capitalizing on minor pricing anomalies in global financial markets.

Hypernyms

  • Merchandise

Related Words

  • Arbitrager (noun)
  • Arbitrage (noun)
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