Arbitrage, in other words is a method to exploit the price differential in a financial deal. Arbitrage involves deep observation of different forms of investment on a continued basis to check and monitor prices, so that the investor, dealer or manager can take advantage of buying from the cheaper source and sell to others offering a higher price. For example, if the price of a stock A was $50 per share on X exchange and same stock value was on Y exchange $42, the dealer or investor can purchase the stock A from Y exchange put it up for sale on the X exchange thus making a $8 profit on each piece of stock.
Arbitrage has been quite popular a few years back. The word "Arbitrage", however, is not used very commonly as it was. Today,
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