Risk-free exploitation of price differences of a security on different stock exchanges on the same trading day without capital investment. This involves the simultaneous buying and selling of assets that are basically identical on different markets (usually stock exchanges) in order to profit from price differences. Such transactions can also involve a combination of different securities (e.g. ordinary shares and options or convertible bonds and ordinary shares). Arbitrage transactions are only advantageous for the investor if the price difference of bought and sold assets is large enough to cover the commissions and other costs incurred.