What is Arbitrage?

Arbitrage in finance and economics is the means of practice that uses the differential of price between two plus markets. Basically it relies on an imbalance between two different market prices.
It involves a transaction with no negated cash flow in any temporary/probable state and at least one positive form of cash flow in the other state. Simply put it refers to profits without risk. In fact, any person using arbitrage is known as an arbitrageur, meaning that that person trades directly in varied financial products and services such as currencies, derivatives, commodities, stocks and bonds. However, if prices do not permit this then the market is arbitrage-free.