n. Arbitration. R. Cobden.n. The calculation of the relative value at the same time, at two or more places, of stocks, bonds, or funds of any sort, including exchange, with a view to taking advantage of favorable circumstances or differences in payments or other transactions; arbitration of exchange.n. The business of bankers which is founded on calculations of the temporary differences in the price of securities, and is carried on through a simultaneous purchase in the cheaper and sale in the dearer market.