arbitrage

Definition

Attempting to profit by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. The ideal version is riskless arbitrage.

Use arbitrage in a sentence

We tried to incorporate an arbitrage technique in order to drive profits up, but it did not seem to work at all.

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You should always try to avoid trying to pull an arbitrage that may damage your reputation in the industry for good.

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As those who were left holding the bag when the financial markets collapsed in 2008, arbitrage can be a risky business for the uninitiated.

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