Arbitrage in economics is defined as the purchase and sale of products in different markets through the combination of offers, taking advantage of the price difference to obtain benefits.
In financial arbitration, a series of simultaneous operations and transactions are carried out that make the acquisition and sale of the products take place at the same time. In this way, you avoid changing the prices of each of the markets. For this reason, arbitrage on the stock market is very common, because it is used to work with financial instruments that do not have a geographical location such as actions, currencies, bonds or bitcoin.
The people who carry out the arbitration are called arbitrageurs and they are usually experts in investment matters and a great investment capacity. This is because the price differences between the markets that are traded are very small, so it is necessary to make large investments to earn money with those small differences.