This is how it works; an arbitrageur would short put up for sale the higher priced stock and pay money for the lower priced one. The difference between the two assets is the gain. There are several permutations that is carried out by the trader and the market arbitrage practice is rooted in the probability that an assets is traded at different countries at the same time but at different prices. What we are saying here is that the same stock has a market value in the UK that is difference from the value on the Japan Stock Exchange.
From the theoretical perceptive, the prices for the same assets on both exchanges should be the same at all times, but market arbitrage opportunities occurs when they are not. Please be aware that arbitrage offers a riskless profit because traders are just trading at equal amounts of the same assets at a time.
This example will make the whole jargon pretty explicit, if Company X’s stock trades at $10 per share on the Japan Stock Exchange and the equivalent of $10.02 on the Johannesburg Stock Market an arbitrageur would buy the stock for $10 on the Japan Stock Market and sell it on the Johannesburg Stock Market for $10.02 and the difference of $0.02 per share is his profit.