Arbitrage is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price. 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 is the strategy of taking advantage of price differences in different markets for the same asset. An arbitrage involves buying an asset on one market while simultaneously selling the same asset on another market for a higher price. Arbitrage in layman's terms is the possibility to make money with no risk. More specifically, it is the simultaneous purchase and sale of something. In finance, arbitrage refers to the simultaneous buying and selling of assets in a different market for profit. Arbitrage is a strategy that investors use while trading where they purchase an asset in one market and sell the same in a different market or stock exchange.