[RandomThoughts3]

> its not just the text book definition of "borrow money at a low interest rate and invest at a higher interest rate"

That’s absolutely not the textbook definition of arbitrage.

Arbitrage is buy something somewhere at a price and resell it in a different market at a higher price. It’s just price arbitration hence the name.

There are no other kind of arbitrage implied when people talk about arbitrage. That’s what the word means.

[anonu]

We can disagree on both points.

The example (ok - not exactly the definition - but close enough) is the Triangular Arbitrage in foreign exchange. This is cited in almost every textbook on explaining the topic.

The Wikipedia entry on arbitrage lists a dozen types of arbs. So while they may all be of the same "type" (buy low/sell high) there are nuances. It's like saying all cow meet is just beef: there are different cuts that taste different.