[ar.bi.trage] n [F, fr. MF, arbitration, fr. OF, fr. arbitrer to render judgment, fr. L arbitrari, fr. arbitr-, arbiter] (1875) 1: the nearly simultaneous purchase and sale of securities or foreign exchange in different markets in order to profit from price discrepancies
2: the purchase of the stock of a takeover target esp. with a view to selling it profitably to the raider
[2]arbitrage vi -traged ; -trag.ing (1900): to engage in arbitrage