Arbitraged is a term that is often used in the world of finance and investments. It refers to the practice of taking advantage of price differences between two or more markets in order to make a profit. In this article, we will explore the definition and meaning of arbitraged, its origin, and its associations.
Definitions
Arbitraged is a verb that means to buy and sell securities, currencies, or commodities in different markets in order to take advantage of price differences. This practice is also known as arbitrage trading. The goal of arbitraged is to make a profit by buying an asset in one market where it is undervalued and selling it in another market where it is overvalued.
Origin
The word arbitraged comes from the French word “arbitrer,” which means to judge or decide. It was first used in the English language in the early 20th century to describe the practice of buying and selling securities in different markets to take advantage of price differences.
Meaning in different dictionaries
According to the Merriam-Webster dictionary, arbitraged means “to buy and sell commodities or securities in different markets or in derivative forms in order to take advantage of differing prices for the same asset.” The Oxford English Dictionary defines it as “the practice of buying and selling securities or commodities in different markets in order to take advantage of price differences.”
Associations
Arbitraged is often associated with the world of finance and investments. It is a common practice among hedge funds, investment banks, and other financial institutions. It is also associated with risk management, as arbitrage traders often use complex financial instruments to hedge their positions.
Synonyms
Some synonyms of arbitraged include arbitrage trading, arbitrage, and arbitrageur.
Antonyms
There are no direct antonyms of arbitraged, but it can be contrasted with speculation, which involves taking a position in the market based on a prediction of future price movements.
The same root words
There are no other words that share the same root as arbitraged.
Example Sentences
- The hedge fund made a profit by arbitraged the price difference between two stock exchanges.
- The investment bank used arbitraged to take advantage of a pricing discrepancy in the bond market.
- The arbitrageur was able to make a quick profit by buying and selling currencies in different markets.