Arbitrage is trading that exploits the tiny differences in price between identical or similar assets in two or more markets. Arbitrage is the act of exploiting price differences within the financial markets to make a profit.Discover tips and strategies for arbitrage trading here. Arbitrage is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price. Arbitrage is the act of taking advantage of a price difference in two different markets. 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 opportunities occur when there is a temporary difference in the price of identical or similar assets in different markets. The definition of arbitrage bond in the IRC 148(a) yield restriction rule refers to. "proceeds.