Definition
Arbitrage is the strategy of buying and selling assets simultaneously to profit from price differences. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Arbitrage. Once they agree it means “Strategy of buying and selling assets simultaneously to profit from price differences”, the argument becomes a decision.
Common mistake
Using Arbitrage as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Arbitrage opportunity
Market situation where identical assets trade at different prices simultaneously.
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Appraisal ratio
Performance metric comparing investment returns to the risk taken.
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Appraisal value
Estimated worth of an asset determined through professional evaluation.
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Arbitration
Alternative dispute resolution method using neutral third-party decision makers.
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