Explain How API Rate Limits Can Hinder High-Frequency Spatial Arbitrage.
API rate limits restrict the number of data requests or trade orders an arbitrage bot can submit to an exchange within a given time frame. High-frequency spatial arbitrage requires continuous, rapid data feeds and the ability to submit orders instantly.
Rate limits can cause the bot to miss fleeting opportunities or fail to update its strategy quickly, leading to stale data and potentially failed trades.