Etymology
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arbitrage (n.)

"arbitration, exercise of the function of an arbitrator," late 15c., from Old French arbitrage "arbitration, judgment," from arbitrer "to arbitrate, judge," from Late Latin arbitrari, from Latin arbiter "judge, umpire, mediator" (see arbiter). In finance, "the business founded on a calculation of the temporary differences in the price of securities in different markets" (1875).

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Definitions of arbitrage
1
arbitrage (v.)
practice arbitrage, as in the stock market;
2
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;
From wordnet.princeton.edu