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• n  a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price
• v  practice arbitrage, as in the stock market

• Merger arbitrage is a gamble only for high rollerspeople with the wealth and insouciance to risk millions on a single transaction.
• The most widely practiced form of program trading, index arbitrage, has been directly linked to at least two post-crash market plunges, despite new rules designed to limit its .
• Chao calls it "knowledge arbitrage.

News & Articles

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• Bernanke Begets $602,000 Risk-Free Chile Arbitrage: Andes Credit
  Ben S. Bernanke has inadvertently created the biggest arbitrage opportunity in the Chilean bond market in 20 months.
  June 21, 2013 - Bloomberg
• Trench Coats: Cloudy With A Chance Of Stylish
  Style Arbitrage
  June 20, 2013 - Forbes
• China Says Trade Figures Inflated by Arbitrage With Hong Kong
  China said data on trade with Hong Kong were inflated by arbitrage transactions that skirted rules, the government’s most explicit acknowledgment that export and import figures this year were overstated.
  June 18, 2013 - Bloomberg

Quotes

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• Josef Ackermann in Reuters
  If you don't have a coordinated approach to regulatory (systems)...... then there's the risk of regulatory arbitrage,Deutsche Bank Chief Executive Josef Ackermann said.
• Michel Barnier in Telegraph.co.uk
  It is important that member states act together and we design a European regime to avoid regulatory arbitrage and fragmentation both within the EU and globally,said Mr Barnier.
• Christine Lagarde in Moneycontrol.com
  French Economy Minister Christine Lagarde said, "We were all in agreement that it had to be a universal taxation or universal levy or instrument to avoid the risk of arbitrage."