Cryptocurrency arbitrage refers to buying cryptocoins on an exchange where the price is lower and simultaneously selling the altcoin at an exchange where the price is relatively higher, ultimately profiting from a temporary difference in prices. The prices of cryptocurrency may vary from one exchange to another, because the markets are not directly linked. The difference in supply and demand across exchanges may result in significant price fluctuation. Often it may take time for prices to adjust to global average
Arbitragewin performs simultaneous arbitrage. It refer to the activities where bot bought the coin from exchange A and at the same time after the deal is done, bot will send sell order to exchange B. When both of them filled successfully, the spreads captured is your profit. Your coins position remains neutral.
Please see the following scenario:
After a while of the arbitrage, your coin position looks like this (number is just for illustration purposes) Your BCH coins volume is down to zero in Bittrex and BTC increased. On the flip site, Bitbank has less BTC and more BCH
You BCH position remain 10 BCH but your BTC increased. That is your profit