Words / A / Law

arbitrage

/ˈɑːbɪtrɑːʒ/

B2CEFR level
55/100Rarity: uncommon
TechnicalRegister

Law noun

The practice of profiting from price differences for the same asset in different markets.

Hedge funds engaged in merger arbitrage, buying the target's shares in anticipation of the bid completing.

Topic: Corporate law in Legal English

Business noun

Profit made from price differences in different markets.

The fund booked millions on a brief currency arbitrage.

Topic: Finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More law words: Corporate law