Latency Arbitrage: How Speed Turns Into Profit
Microsecond races decide a fifth of trading volume in some markets. How latency arbitrage works, what the regulator data show, who wins and how exchanges are redesigning around it.
Arbitrage Strategies
Latency, triangular, cross-exchange, intercontinental and statistical arbitrage: mechanics, economics, infrastructure and market-design responses.
Arbitrage Strategies: an overview
Arbitrage keeps related prices in line across venues, instruments and continents. In modern electronic markets most arbitrage is a race measured in microseconds, and its economics are shaped as much by market design as by trading skill.
We explain how each arbitrage family works, what infrastructure it needs, what the academic and regulatory evidence says about its costs and benefits, and how exchanges respond with speed bumps, auctions and randomisation.
Latest Arbitrage Strategies research
Browse all research Key concepts
- Latency arbitrage
- Trading against quotes that have become stale because new information has not yet reached every participant.
- Statistical arbitrage
- Trading temporary deviations between statistically related prices, expecting them to mean-revert.
- Basis
- The price difference between a derivative and its underlying, the anchor of cash-and-carry trades.
Research roadmap
What we cover in Arbitrage Strategies
Our editorial plan for this section. Published guides are linked; the rest are in research.
- Live Latency Arbitrage: How Speed Turns Into Profit
- Soon Latency Arbitrage in Forex: How LPs and Brokers See It
- Soon Triangular Arbitrage Explained: From Theory to Execution
- Soon Cross-Exchange Arbitrage Between Venues and Countries
- Soon Arbitrage Between Continents: The Global Latency Map
- Soon Pairs Trading and Statistical Arbitrage Explained
- Soon Cointegration-Based Pairs Trading: A Python Walkthrough
- Soon Basis Trading: How the Cash-Futures Basis Is Arbitraged
- Soon How ETF Arbitrage Keeps Prices in Line
- Soon Index Arbitrage Between Futures and the Cash Market