Trading permissions · Pro
Latency arbitrage
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A strategy compares a fast reference feed with an outdated platform quote.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.