# Toxic flow

> Order flow that profits consistently from an information or speed advantage over the counterparty rather than from market views.

**Source:** https://proptechpal.com/glossary/toxic-flow  
**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

A liquidity provider will reprice or refuse it, which is why a firm routing flow to the market has to identify it first.

## Where it applies

- [Latency arbitrage](https://proptechpal.com/glossary/latency-arbitrage)
- [Prop firm risk management software](https://proptechpal.com/categories/risk-management)

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