Business, Legal & Accounting Glossary

Definition: Arbitrageur

Quick Summary of Arbitrageur

someone who engages in arbitrage (who purchases securities in one market for immediate resale in another in the hope of profiting from the price differential).

What is the dictionary definition of Arbitrageur?

Dictionary Definition

finance One who engages in arbitrage, such as a financial broker or an investment bank.

Full Definition of Arbitrageur

An arbitrageur is an individual or an organization that engages in the act of arbitrage, taking advantage of market imbalances. For example, an arbitrageur would locate a commodity (i.e. grain) or a security (i.e. stock) in a lower-priced market and then immediately resell in another market at a higher price, in the hope of profiting from the price differential. An arbitrageur might participate in risk-free arbitrage (true arbitrage) or an arbitrageur might be involved in risk arbitrage (statistical arbitrage). An arbitrageur would be engaged in risk-free arbitrage when buying stock at a low price and than selling high. The types of risk or statistical arbitrage that an arbitrageur might be involved in include merger, liquidation and/or pairs trading. Often, an arbitrageur is a seasoned investor who has a deep understanding of the markets and can exploit hard-to-find opportunities. From an economic standpoint, an arbitrageur can help reduce market price disparities and increase a market’s liquidity.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Arbitrageur. Payroll & Accounting Heaven Ltd. May 13, 2021
Chicago Manual of Style (CMS):
Arbitrageur. Payroll & Accounting Heaven Ltd. (accessed: May 13, 2021).
American Psychological Association (APA):
Arbitrageur. Retrieved May 13, 2021, from website:

Definition Sources

Definitions for Arbitrageur 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: 15th February, 2020 | 0 Views.