Noun
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)
Source: WordNetGiven the profits he and Pharaoh must have made, one might call Joseph the first international arbitrageur. Benoît Mandelbrot
Giuliani had his agents arrest Tim Tabor, a young arbitrageur and former colleague of Wigton, so late that he had to stay overnight in jail before posting bond. citation Heidi Collins, Allan Chernoff, Crystal McCrary Anthony, http://transcripts. Source: Internet
In this way, the arbitrageur makes a low-risk profit, while keeping ETF prices in line with their underlying value. Source: Internet
When a significant enough premium appears, an arbitrageur will buy the underlying securities, convert them to shares in the ETF, and sell them in the open market. Source: Internet
For instance an arbitrageur would first buy a convertible bond, then sell fixed income securities or interest rate futures (to hedge the interest rate exposure) and buy some credit protection (to hedge the risk of credit deterioration). Source: Internet
This leaves the arbitrageur in an unhedged risk position. Source: Internet