Origin: French suffix -age
Arbitrage has 4 different meanings across 2 categories:
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
A market activity in which a security, commodity, currency or other tradable item is bought in one market and sold simultaneously in another, in order to profit from price differences between the markets.
practice arbitrage, as in the stock market
To employ arbitrage