Arbitrage meaning: Arbitrage is buying a security

Arbitrage is buying a security in one market and simultaneously selling it in another at a higher price, profiting from the temporary difference in prices. Arbitrage examples in everyday life Arbitrage is prevalent in financial markets, but it also takes place all around us on a regular basis. Ticket scalping is a form of arbitrage that involves buying tickets for events, such as concerts or sports games, and reselling them at higher prices. What is ' Arbitrage ' Definition : Arbitrage is the process of simultaneous buying and selling of an asset from different platforms, exchanges or locations to cash in on the price difference (usually small in percentage terms). While getting into an arbitrage trade, the quantity of the underlying asset bought and sold should be the same. Arbitrage means taking advantage of price differences across markets to make a buck. If a currency, commodity or security—or even a rare pair of sneakers—is priced differently in two separate ...