Arbitrages

/ˈɑːrbɪtrɑːʒəz/ noun

Definition

Plural of arbitrage; multiple instances of buying and selling securities or commodities simultaneously across different markets to profit from price discrepancies.

Etymology

From French 'arbitrage' (the act of arbitrating/judging). The financial meaning emerged in the 18th century as international trade created price variations between markets.

Kelly Says

Arbitrage is essentially legal 'finding money'—you're not creating value, you're just finding where the market accidentally priced something differently in two places and capturing that gap!

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