What Is a Common High-Frequency Trading (HFT) Strategy That Exploits Market Data Feed Speed Differences?

A common HFT strategy is "latency arbitrage." This involves exploiting the time difference between when market data (e.g. a new price quote) is received by the HFT firm and when it reaches other, slower market participants. The HFT firm can place a profitable trade based on the new information before the rest of the market has a chance to react and update their prices.