'arbitrage' originates from French, specifically the word 'arbitrage', ultimately related to 'arbitre' (arbiter), which traces back to Latin 'arbiter' meaning 'judge' or 'one who sees/decides'.

'arbitrage' entered English from French in the 18th century with the sense of 'settlement by arbitration'; later, as modern finance developed, the term acquired the specialized sense of profiting from price differences between markets.

Initially, it meant 'settlement by arbitration' (using an arbitrator to decide), but over time it evolved to include the financial meaning 'exploiting price differences for profit', which is now a primary sense in finance.