Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. Arbitrage Trading: Alameda uses the freshly minted USDT to buy cryptocurrencies at a lower price on one exchange.Private Arbitration (binding and non-binding) occurs when parties involved in a dispute either agree or are contractually obligated. Buying and selling something at the same time, in different markets, in order to lock in a profit. He explained his success comes from lucrative arbitrage opportunities in crypto.