Arbitrage is the simultaneous purchase and sale of an asset in order to take advantage of a difference in price. More. Pronunciations of the word 'arbitrage'.Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. The simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices. An arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state. Arbitrage is the buying and selling of assets, profiting from the price difference between the price paid to buy and the price at the time of sale. Arbitrage refers to a profit making activity where buying and selling of a security is done on different exchanges or markets. Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset. Arbitrage refers to a profit making activity where buying and selling of a security is done on different exchanges or markets. Arbitrage is the simultaneous buying and selling of a good for two different prices, locking in a guaranteed profit.