How Can API Limitations Affect the Performance of HFT Bots?

Exchange APIs often impose rate limits, restricting the number of requests (e.g. price quotes, order submissions) an HFT bot can make per second. These limits can prevent the bot from getting the latest price data or executing trades fast enough to capture an arbitrage opportunity.

HFT bots must be designed to manage these limits efficiently, prioritizing critical requests and using high-throughput connections where available.