arbitrage Sentence Examples

  1. In the world of finance, arbitrage involves exploiting price discrepancies in different markets simultaneously.
  2. Experienced traders use arbitrage strategies to capitalize on price differentials between similar assets.
  3. The arbitrageur carefully monitors the stock and currency markets for opportunities to execute profitable trades.
  4. High-frequency trading algorithms are designed to execute arbitrage strategies within fractions of a second.
  5. Arbitrage opportunities arise when there is a temporary imbalance in supply and demand across markets.
  6. The efficient market hypothesis suggests that arbitrage opportunities should be quickly eliminated as market participants capitalize on them.
  7. Some investors specialize in arbitrage, employing sophisticated mathematical models to identify and exploit pricing inefficiencies.
  8. Currency arbitrage involves buying and selling currencies across different foreign exchange markets to profit from exchange rate differentials.
  9. Statistical arbitrage relies on complex statistical analysis to identify patterns and anomalies in market prices.
  10. While arbitrage can be lucrative, it requires quick execution and careful risk management to avoid losses.

arbitrage Meaning

Wordnet

arbitrage (n)

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

Wordnet

arbitrage (v)

practice arbitrage, as in the stock market

Webster

arbitrage (n.)

Judgment by an arbiter; authoritative determination.

A traffic in bills of exchange (see Arbitration of Exchange); also, a traffic in stocks which bear differing values at the same time in different markets.

Synonyms & Antonyms of arbitrage

No Synonyms and anytonyms found

FAQs About the word arbitrage

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 arbi

No synonyms found.

No antonyms found.

In the world of finance, arbitrage involves exploiting price discrepancies in different markets simultaneously.

Experienced traders use arbitrage strategies to capitalize on price differentials between similar assets.

The arbitrageur carefully monitors the stock and currency markets for opportunities to execute profitable trades.

High-frequency trading algorithms are designed to execute arbitrage strategies within fractions of a second.