Arbitrage House

Business, Legal & Accounting Glossary

Definition: Arbitrage House

Arbitrage House

Full Definition of Arbitrage House

A financial institution that engages in arbitrage. Such firms search for market inefficiencies and securities which they feel are mispriced, and then undertake trades that allow them to make riskless profits. Arbitrage opportunities are often quite difficult to detect since mispricings can be very small. Also, arbitrage opportunities tend to disappear almost immediately since market forces act to reverse the opportunity. Because of these characteristics of arbitrage, many arbitrage houses are equipped with very sophisticated computer software and hardware to help them identify potential opportunities and act on them very quickly.

Many arbitrage houses also develop complex software-driven mathematical models to find mispricings and market inefficiencies.

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Modern Language Association (MLA):
Arbitrage House. Payroll & Accounting Heaven Ltd. November 30, 2021
Chicago Manual of Style (CMS):
Arbitrage House. Payroll & Accounting Heaven Ltd. (accessed: November 30, 2021).
American Psychological Association (APA):
Arbitrage House. Retrieved November 30, 2021, from website:

Definition Sources

Definitions for Arbitrage House are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th November, 2021 | 0 Views.