Arbitrage
/ˈɑːrbɪtrɑːʒ/
Definitions
- (n.) The practice of taking advantage of a price difference between two or more markets, often used in securities and commodities trading and sometimes regulated under financial law.
The trader engaged in arbitrage by simultaneously buying and selling the security in different markets to profit from price discrepancies.
Forms
- arbitrage
Related terms
See also
Commentary
Arbitrage is primarily a financial concept but relevant to legal practice through its regulation in securities law and anti-fraud statutes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.