# Latency arbitrage

> Trading against prices that lag the real market — a slow feed — to capture a move that has already happened elsewhere.

**Source:** https://proptechpal.com/glossary/latency-arbitrage  
**Generated:** 2026-09-24  
**Publisher:** Prop Tech Pal — independent prop firm technology comparison

_Disclosure grades measure what a vendor publishes, never product quality. A vendor publishing a weak SLA scores better than one publishing none._

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## Why it matters

Prop firm rulebooks commonly prohibit it. Detecting it needs trade-level analysis against a reference feed, which some risk engines provide and others do not.

## Where it applies

- [Prohibited strategies](https://proptechpal.com/glossary/prohibited-strategies)
- [Prop firm risk management software](https://proptechpal.com/categories/risk-management)

[The full glossary](https://proptechpal.com/glossary)