In finance, arbitrage is the activity of buying shares or currency in one financial market and selling it at a profit in another. 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 is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price. In its purest form, an arbitrage involves buying an asset on one market while simultaneously selling the same asset on another market for a higher price. Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset. Arbitrage is not simply the act of buying a product in one market and selling it in another for a higher price at some later time. Findings with others in the academic and business community.