---
title: "Latency arbitrage - Meaning & GFN's Figure - Get Funded Now"
description: "Trading on a price that is known to be stale because a faster feed has already moved. It profits from a delay in the environment rather than from any…"
url: "https://getfundednow.com/glossary/latency-arbitrage"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/latency-arbitrage"
  pt-BR: "https://getfundednow.com/pt-br/glossary/latency-arbitrage"
  fr: "https://getfundednow.com/fr/glossary/latency-arbitrage"
  it: "https://getfundednow.com/it/glossary/latency-arbitrage"
  de: "https://getfundednow.com/de/glossary/latency-arbitrage"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Tooling and execution

# Latency arbitrage

Trading on a price that is known to be stale because a faster feed has already moved. It profits from a delay in the environment rather than from any view about the market, and it is prohibited industry-wide.

GFN’s figure

Latency arbitrage is explicitly prohibited on GFN accounts, alongside exploiting delayed or incorrect pricing, exploiting platform errors, front-running and coordinated trading between customers.

- **Status**: Prohibited
- **Related prohibitions**: Delayed or incorrect pricing, platform errors, front-running
- **Consequence**: Review, restriction, rejected payouts or termination

In detail

## Latency arbitrage, explained

The reason it is banned everywhere is that it is not trading. The profit comes from the firm's infrastructure rather than from the market, and it scales until the firm notices.

Detection is straightforward, because the pattern is distinctive: repeated entries immediately before a price updates, with unusually high accuracy over very short holds.

[The rule in full →](https://getfundednow.com/rules/prohibited-trading) · [Rules handbook](https://getfundednow.com/rules) · [More tooling and execution](https://getfundednow.com/glossary/category/tooling)

Related

## Terms that come with it

Most rules only make sense next to the ones they interact with. These are the entries this one depends on.

- [Latency](https://getfundednow.com/glossary/latency) - The delay between an action and its effect - an order leaving your machine and reaching the venue, or a price leaving the venue and reaching your screen. Measured in milliseconds.
- [Prohibited trading](https://getfundednow.com/glossary/prohibited-trading) - Activity a firm bans because it targets the trading environment rather than the market. It covers exploiting errors and pricing delays, coordinated trading between accounts, and third-party account management.
- [Tick scalping](https://getfundednow.com/glossary/tick-scalping) - Taking positions for a handful of ticks at a time, often held for seconds. Where the profit comes from a pricing lag rather than a market view, firms treat it as exploiting the environment.
- [High-frequency trading](https://getfundednow.com/glossary/high-frequency-trading) - Automated trading at very high order rates and very short holding periods, measured in seconds or less. It depends on infrastructure rather than analysis, and it is not what a retail prop account is built for.
- [Breach](https://getfundednow.com/glossary/breach) - Any violation of an account's published rules. Breaches are graded: a soft one triggers corrective action, a hard one fails the account. The word is used for both, which is why the grade matters more than the term.

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Source: https://getfundednow.com/glossary/latency-arbitrage
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt