Latency arbitrage is profiting from being able to act on a price change before slower participants can update their own quotes. It is contested as a matter of market design and fairness, but it is not manipulation: nothing false is communicated.
market microstructure · updated 2026-09-08
See also
High-frequency trading— High-frequency trading is automated trading characterised by very short holding periods, high message rates and co-located infrast…
Co-location— Co-location is renting rack space in or next to an exchange's data centre so that the physical distance to the matching engine is …