WordValenoun
arbitrage
profiting from price differences of the same asset in different markets
In more detail
1. (noun) the practice of buying something in one place and immediately selling it in another place to make a profit from the price difference
2. (noun) the profit made from this activity
Examples
- Currency arbitrage involves buying dollars in one country and selling them in another where they're worth more.
- Traders made a quick arbitrage by purchasing the stock on a cheaper exchange and selling it on an expensive one.
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