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VORADictionaryC1Arbitrage
CEFR C1 — Advanced

Arbitrage

Definition

The practice of taking advantage of a difference in price or exchange rate between two or more markets, in order to make a profit by buying in one market and selling in another.

Example Sentences

1The company specializes in arbitrage, buying cheap stocks in one country and selling them at a higher price in another.
2Is arbitrage a common practice in the foreign exchange market?
3Arbitrage opportunities arise when there are inefficiencies in the market, allowing traders to profit from price differences.
4The fund manager was accused of using arbitrage to manipulate the market and make unfair profits.
5In theory, arbitrage should eliminate price differences between markets, but in reality, it often creates new opportunities for traders to exploit.

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