Arbitration of exchange - A calculation based on rates of exchange to determine the difference
in money values at three or more places; or, a calculation based on the money values at three or
more places to determine the ratio of exchange between the different places. Where three places
are concerned the calculation is called simple arbitration ; where more than three places are
concerned the calculation is called compound arbitration.

As an operation (as distinguished from a calculation) arbitration of exchange consists in dealing
for profit in exchange between three or more places. The profit is derived from the difference in
the rates of exchange on the several places.