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 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. Arbitrage can be defined as the concurrent purchase and sale of similar assets in different markets in order to take advantage of price differentials. Arbitrage refers to an investment strategy designed to produce a risk-free profit. The simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices.