'arbitrage' originates from French, specifically the word 'arbitrage', where the root 'arbiter' (from Latin 'arbiter') meant 'judge' or 'one who decides'.

'arbitrage' came into English from French 'arbitrage' (modern French), ultimately deriving from Latin 'arbiter' meaning 'judge'; the term was used in the sense of 'judgment' or 'decision' and later applied to commercial and financial contexts.

Initially, it referred to the act of judging or deciding (a judgment or arbitration); over time it evolved in commerce and finance to mean exploiting price differences between markets (financial arbitrage).