Arbitrage is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price. Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its 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. Buying a good or asset in one market where price is low, and simultaneously selling in another market where price is higher. An arbitrage involves buying an asset on one market while simultaneously selling the same asset on another market for a higher price. In finance, arbitrage refers to the simultaneous buying and selling of assets in a different market for profit. Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset. The simultaneous purchase and sale of the same securities, commodities, or foreign exchange in different markets to profit from unequal prices.