Definition
Latency arbitrage
Exploiting a delayed price feed by trading against a faster one — universally banned and payout-voiding.
If a firm's (simulated) feed lags the real market by even milliseconds, a bot can 'trade the past'. It's the canonical banned strategy: firms void the profits and terminate accounts.
Related banned cousins: tick scalping feed errors, gap arbitrage on stale quotes, and cross-broker latency plays.
Related terms
General industry definitions — individual firms define terms differently in their own ToS; the decoded rulebook for each firm is the source of truth. Educational, not financial advice.