Define: Arbitrageur

UK 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.


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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.


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Arbitrageur. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 29, 2020 https://payrollheaven.com/define/arbitrageur/.
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Arbitrageur. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/arbitrageur/ (accessed: February 29, 2020).
American Psychological Association (APA):
Arbitrageur. PayrollHeaven.com. Retrieved February 29, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/arbitrageur/

Definition Sources


Definitions for Arbitrageur are sourced/syndicated and enhanced from:

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

This glossary post was last updated: 4th February 2020.