Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. An arbitrage involves buying an asset on one market while simultaneously selling the same asset on another market for a higher price.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. The profit from buying something in one market and selling it in another. Arbitrage is a financial process that occurs when someone sells the same asset in two different markets simultaneously, one at a higher price than the other. Arbitrage is the process of simultaneous buying and selling of an asset from different platforms, exchanges or locations to cash in on the price difference.