BusinessAugust 17, 2026

arbitrage

AR-bih-trahzh

Definition

The simultaneous purchase and sale of the same or equivalent assets in different markets to profit from small differences in their price.

Etymology

Derived from the Old French word 'arbitrage,' meaning judgment or mediation, reflecting the idea of an 'arbitrator' balancing prices between two distinct market venues.

In the news

The article describes how hedge funds use leveraged arbitrage strategies to profit from pricing discrepancies between cash Treasury bonds and their corresponding futures contracts.

US government bond market selloff opens lucrative trading opportunities

Read the full article ↗

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