The simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices. Arbitrage is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price.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 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 act of buying and selling goods simultaneously in different markets to gain an immediate profit. Impressive, but tricky. Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset. 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.