arbitrage definition
- Full Definition of ARBITRAGE. 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 especially with a view to selling it profitably to the raider.See arbitrage defined for English-language learners.usiness: the practice of buying something (such as foreign money, gold, etc.) in one place and selling it almost immediately in another place where it is worth more.