套利

tàolì

verb

Meanings

1 arbitrage
2 to profit from price differences across markets

Characters

to lock in; to harness

profit; benefit

Examples

对冲基金在不同市场之间进行套利。

Duìchōng jījīn zài bùtóng shìchǎng zhījiān jìnxíng tàolì.

Hedge funds carry out arbitrage across different markets.

随着市场效率提高，套利空间越来越小。

Suízhe shìchǎng xiàolǜ tígāo, tàolì kōngjiān yuè lái yuè xiǎo.

As market efficiency improves, arbitrage opportunities are shrinking.

Tips

memory

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

Stroke Order

套 tào

利 lì