What Is Factor Investing? Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price.How Does Arbitrage Contribute to Market Efficiency? What Are the Most Common Pitfalls in Arbitrage Trading for Beginners? Arbitrage is the act of taking advantage of different prices for the same asset. How to Invest in ETFs for Beginners. Exchange-traded funds let an investor buy lots of stocks and bonds at once. The opportunity of buying an asset at a low price in one market and selling it for more elsewhere. Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset. To the date one can find in the literature dozens of models of financial markets together with a plethora of definitions of arbitrage opportunities.