Arbitrage trading seeks to take advantage of price discrepancies in a single security trading in two different markets to make a profit. Arbitrage trading refers to taking advantage of a price ...

Michael Lewis's 2014 book Flash Boys brought wider attention to how some high-frequency traders were making millions through latency arbitrage, profiting from microsecond advantages in trading speed.

This algorithm tries to take advantage of price differences of a stock trading in separate markets and exchanges. Just like arbitrage trading, the program seeks to buy a stock on an exchange at a ...