Definition of Arbitrageur:
One who practices arbitrage.
A person who engages in arbitrage.
An arbitrageur is a type of investor who attempts to profit from market inefficiencies. These inefficiencies can relate to any aspect of the markets, whether it is price or dividends or regulation. The most common form of arbitrage is price.
Arbitrageurs exploit price inefficiencies by making simultaneous trades that offset each other to capture risk-free profits. An arbitrageur would, for example, seek out price discrepancies between stocks listed on more than one exchange by buying the undervalued shares on one exchange while short selling the same number of overvalued shares on another exchange, thus capturing risk-free profits as the prices on the two exchanges converge.
How to use Arbitrageur in a sentence?
- Arbitrageurs need to be detail-oriented and comfortable with risk.
- Institutional shareholders including arbitrageurs traditionally do not respond to offers up until close to the deadline.
- Arbitrageurs are investors who exploit market inefficiencies of any kind. They are necessary to ensure that inefficiencies between markets are ironed out or remain at a minimum.
Meaning of Arbitrageur & Arbitrageur Definition