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 simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price.Changes in interest rates can give rise to arbitrage opportunities that, while short-lived, can be very lucrative for traders who capitalize on them. Airbnb rental arbitrage is the act of renting a property longterm and then rerenting it shortterm on vacation rental sites like Airbnb or Vrbo. An investment trading strategy that exploits divergences between actual and theoretical futures prices. Rental arbitrage allows these aspiring Airbnb hosts to start generating profit from a rental business. How Does Airbnb Arbitrage Work? A riskless arbitrage in which a discount option is purchased and an opposite position is taken in the underlying security. Business at Harvard Law School is gratefully acknowledged. And the ones that would buy you more time to work ON your business.