Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. How Does Arbitrage Contribute to Market Efficiency?What Are the Most Common Pitfalls in Arbitrage Trading for Beginners? Arbitrage is the practice of exploiting price differences in different markets or platforms to profit from buying and selling assets, securities, or goods. How to Invest in ETFs for Beginners. Exchange-traded funds let an investor buy lots of stocks and bonds at once. Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset. Arbitrage is a trading strategy. The goal is to generate profit from slight differences in price between similar, or identical, assets. It's an investment strategy where you convert a domestic currency with a low interest rate to a foreign currency with higher interest to try to profit from it.