Conclusion
Arbitrageur is a term that is commonly used in the world of finance and economics. It refers to an individual or a company that engages in the practice of arbitrage, which involves buying and selling securities, currencies, or other financial instruments in different markets to take advantage of price differences. In this article, we will explore the definition and meaning of the term “arbitrageur.”
Definitions
An arbitrageur is a person or a company that engages in arbitrage, which is the practice of buying and selling securities, currencies, or other financial instruments in different markets to take advantage of price differences. The goal of an arbitrageur is to make a profit by exploiting these price differences.
Origin
The term “arbitrageur” comes from the French word “arbitrage,” which means “judgment” or “decision.” The term was first used in the world of finance and economics in the early 20th century.
Meaning in different dictionaries
According to Merriam-Webster, an arbitrageur is “one who practices arbitrage.” The Oxford English Dictionary defines an arbitrageur as “a person who engages in arbitrage.” The Cambridge Dictionary defines an arbitrageur as “someone who buys and sells shares, currencies, etc. in different markets in order to make a profit from the difference in price.”
Associations
Arbitrageurs are often associated with hedge funds, investment banks, and other financial institutions that engage in high-frequency trading. They are also associated with the concept of market efficiency, which suggests that prices in financial markets reflect all available information.
Synonyms
Some synonyms of arbitrageur include trader, speculator, and investor.
Antonyms
There are no direct antonyms of arbitrageur, but some related terms include long-term investor, value investor, and buy-and-hold investor.
The same root words
The root word of arbitrageur is “arbitrage,” which comes from the French word “arbitrer,” meaning “to judge” or “to decide.” The term is also related to the Latin word “arbitrium,” which means “judgment” or “decision.”
Example Sentences
- The arbitrageur made a profit by buying stocks in one market and selling them in another.
- Many hedge funds employ arbitrageurs to help them identify and exploit market inefficiencies.
- The role of the arbitrageur is to take advantage of price differences in financial markets.
In conclusion, an arbitrageur is a person or a company that engages in the practice of arbitrage, which involves buying and selling securities, currencies, or other financial instruments in different markets to take advantage of price differences. While arbitrageurs are often associated with high-frequency trading and market efficiency, they play an important role in the functioning of financial markets.