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Home/Glossary/Latency arbitrage

Trading permissions · Pro

Latency arbitrage

By Omer Rapaport · Content updated 11 September 2026

What does Latency arbitrage mean?

Latency arbitrage seeks to exploit differences in the timing of price information. In a simulated prop account, trading against a delayed quote can conflict with the provider’s rules.

Example

A strategy compares a fast reference feed with an outdated platform quote.

Illustrative example; not a provider’s quoted offer.

Why it matters for prop traders

Ordinary fast execution is not the same as exploiting stale prices. Check the provider’s specific prohibited-practice definitions.

Sources and further reading

The following primary sources support the terminology. Provider rules describe their own products and may change.

  • FTMO - Forbidden trading practices

Related terms

  • Account sharing
  • Forbidden trading practices
  • News blackout window
← All 181 terms

Frequently asked questions

Is ordinary fast execution the same as latency arbitrage?

Ordinary fast execution is not the same as exploiting stale prices. Check the provider’s specific prohibited-practice definitions.

Sources: FTMO - Forbidden trading practices

What is a practical example of Latency arbitrage?

Illustrative example: A strategy compares a fast reference feed with an outdated platform quote.

Sources: FTMO - Forbidden trading practices

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