Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. We discuss various forms of what is commonly called "arbitrage" in this context, and single out a particularly egregious form of this phenomenon.Arbitrage is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price. Arbitrage is a financial term that means taking advantage of different prices for the same assets in different markets. First we need some definitions. Arbitrage is the simultaneous buying and selling of a good for two different prices, locking in a guaranteed profit. Airbnb rental arbitrage is the act of renting a property longterm and then rerenting it shortterm on vacation rental sites like Airbnb or Vrbo. Arbitrage refers to exploiting a price imbalance in the same asset that exists between two or more markets.