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.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. Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset. To put it into context, arbitrage is when a trader buys and sells an asset at different locations, at the same time. The profit from buying something in one market and selling it in another. An arbitrage involves buying an asset on one market while simultaneously selling the same asset on another market for a higher price. Arbitrage refers to a profit making activity where buying and selling of a security is done on different exchanges or markets. 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.