The act of buying and selling goods simultaneously in different markets to gain an immediate profit. Impressive, but tricky.Arbitrage describes the practice of buying and selling an asset in order to profit from a difference in the asset's price between markets. Arbitrage is the simultaneous purchase and sale of an asset in order to take advantage of a difference in price. In the meantime, the Issuer suffers the Negative Arbitrage. Negative Covenant: a contractual provision in an Indenture, Credit.