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.Arbitrage is when an investor purchases an investment property below market value and quickly sells or rents it for a profit. For example, buying dollars in France for immediate resale in Italy where the market price for dollars is higher. Arbitrage trading is a type of trading method that involves buying and selling an asset in one market while immediately selling it in another. Arbitrage is the act of taking advantage of a price difference in two different markets. Arbitrage is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price. Airbnb rental arbitrage involves leasing a property longterm and then renting it out shortterm on platforms like Airbnb. Geographic arbitrage means taking advantage of the differences in prices between various locations. You earn money in a stronger economy.