Arbitrage is a condition where you can simultaneously buy and sell the same or similar product or asset at different prices, resulting in a risk-free profit. Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset.For example, an arbitrage opportunity is present when there is the possibility to instantaneously buy something for a low price and sell it for a higher price. Arbitrage in trading is the practice of simultaneously buying and selling an asset to take advantage of a difference in price. Arbitrage is a function of generating income from trading particular currencies, securities, and commodities in two different markets. An arbitrage involves buying an asset on one market while simultaneously selling the same asset on another market for a higher price.