What is Arbitrage ? 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. This investing strategy helps the investors generate profit through an asset's varying prices in different markets. Big institutions, hedge funds, and professional traders take advantage of this investing strategy to generate profit in large volume. Arbitrage is a practice where traders take benefit of market ... Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset. In essence, arbitrage is a situation that a trader can profit from ARBITRAGE definition : 1. the method on the stock exchange of buying something in one place and selling it in another…. Learn more. Discover effective arbitrage strategies with our comprehensive guide. Learn about the definition , types, components, and rules of arbitrage strategies.