Arbitrage is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price. Arbitrage means profiting from price discrepancies in markets.The simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices. Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. Geographic arbitrage means taking advantage of the differences in prices between various locations. CC-Air HQ Izmir. ADivP. 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.