Arbitrage \Ar"bi*trage\, n. [F., fr. arbiter to give judgment, L. arbitrari.]

1. Judgment by an arbiter; authoritative determination. [Archaic]

2. (Com) A traffic in bills of exchange (see Arbitration of Exchange); also, a traffic in stocks which bear differing values at the same time in different markets.

Source: Webster's Revised Unabridged Dictionary (1913)