What context can I use each word in?
Learn when and how to use these words with these examples!
arbitrage
Example
The investor engaged in arbitrage by purchasing stocks on one exchange and selling them on another for a higher price. [arbitrage: noun]
Example
She is skilled at arbitraging currencies and making profits from the exchange rate differences. [arbitraging: verb]
trading
Example
He works in international trading, importing and exporting goods between different countries. [trading: noun]
Example
They are trading their old car for a newer model. [trading: verb]
Good things to know
Which word is more common?
Trading is a more commonly used term than arbitrage in everyday language. Trading is a versatile word that covers various contexts, including financial markets and the exchange of goods. On the other hand, arbitrage is a more specialized term used primarily in the field of finance and investment.
What’s the difference in the tone of formality between arbitrage and trading?
Both arbitrage and trading can be used in formal and informal contexts. However, arbitrage is more commonly associated with formal and professional settings due to its specialized nature in finance and investment.
