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Arbitrage:

: A system by which a security is purchased in one market and sold in another to take advantage of a difference in value.  

For instance, a security may be bought on the NYSE at $75 and sold on the European stock market at $75¼.  The difference in value is very small and markets change rapidly, therefore these trades are conducted by experienced, licensed professionals for large financial groups.  These are sometimes referred to as trading programs [not to be confused with Trade Programs where fraudsters would have you believe that huge profits are available by purchasing LETTERS OF CREDIT, DEBENTURES, TREASURIES, or other securities at a DISCOUNTED price and "simultaneously" selling them in a SECONDARY MARKET).  

Arbitrage is also used when an entity borrows funds in one market and lends funds at a higher rate in another market.  

: Swindlers use this term as a process that enables a person to obtain a  SELF-LIQUIDATING LOAN, a scam in which the target is led to believe that money may be borrowed and never repaid.  Some fraudsters weave arbitrage used in currency trade into these schemes.