The simultaneous buying and selling of a coin in different markets in order to profit from price discrepancies.
Example:
Let’s suppose that there is a sell order for Dash at Cryptopia at the price of 0.07100000 BTC and the purchase price for the same currency in Bittrex is 0.07200000 BTC. The simultaneous purchase of Dash from Cryptopia and its sale at Bittrex can lead to earnings of 0.00100000 BTC per unit (To make it simple, we did not include the trading fees).
* There is a useful arbitrage tool at Cryptopia platform (https://www.cryptopia.co.nz/Arbitrage), which informs us about the prices of several coins at certain exchanges in real time.
