Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. Rental arbitrage allows property owners to share in profits from these opportunities and enables them to diversify their rental income.Arbitrage is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price. An example of arbitrage is when somebody buys a stock on one exchange for ten dollars and immediately sells it on another exchange for eleven dollars. Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset.