Arbitrage, defined as a transaction executed in financial markets to secure risk-free profits by exploiting price discrepancies of an asset across multiple marketplaces, was initially employed by Venetian traders during the late Middle Ages. Arbitrage, regarded as a crucial component of financial economics, is founded on the Law of One Price, which asserts that, under typical circumstances, a thing cannot simultaneously possess multiple prices. The arbitrage mechanism is initiated when a price discrepancy arises, and it involves the purchase of undervalued markets and the sale of overvalued ones. This process persists until prices reach equilibrium, resulting in the establishment of a “single price.” Arbitrage plays a crucial role in establishing a uniform price by rectifying price discrepancies in the marketplaces. The literature identifies three primary forms of arbitrage: cross-currency arbitrage, tri-party arbitrage, and foreign exchange arbitrage. The permissibility of arbitrage within Islamic jurisprudence is a contentious matter. Some scholars contend that currency trading and speculation violate the core precepts of Islam, while others assert that such transactions are acceptable under specific circumstances. Islamic law stipulates three fundamental conditions for an arbitrage transaction to be considered halal: The transaction must occur through an interest-free institution; both parties must be able to acquire money or property as a result; and the transaction must be executed promptly. The satisfaction of these conditions is requisite for the legality of arbitrage under Islamic law.