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What is the definition of Latency arbitrage trading ?
What is the definition of Latency arbitrage trading ?
Updated over 6 months ago

Under the prohibited practice of Latency Arbitrage Trading is hidden a method that seeks to gain an unfair advantage by trying to frontrun broker’s pricing and execution by utilizing a faster feed from other sources. Using this faster feed, an attempt is made to open a position when the discrepancy between the two feeds is significant enough to allow for a risk-free trade.

This practice is forbidden as it seeks to exploit possible technical shortcomings and is generally not replicable in the real market.

Kindly be advised that this definition applies to general instances and explanation, and the company retains the privilege to assess each case on an individual basis.

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