套利

tàolì
verb

Meanings

  1. 1 arbitrage
  2. 2 to profit from price differences across markets

Examples

HSK 5
Suízhe shìchǎng xiàolǜ tígāo, tàolì kōngjiān yuèláiyuè xiǎo.
As market efficiency improves, arbitrage opportunities are shrinking.
HSK 6
Duìchōng jījīn zài bùtóng shìchǎng zhījiān jìnxíng tàolì.
Hedge funds carry out arbitrage across different markets.

Tips

memory
套 'to lock in / to harness' + 利 'profit' = locking in a profit. Compare 套现 (to cash out), same 套 of 'extracting value through a clever maneuver'.

Stroke Order

套 tào
利 lì