Skip to main content
Learn

What Is the Difference between Front-Running and Latency Arbitrage in Traditional Options Trading?

Front-running is illegal, based on non-public information; latency arbitrage is legal, based on technological speed advantage exploiting price discrepancies.
Greeks.Live11.11.25

What Is the Difference between Front-Running and Latency Arbitrage in Traditional Options Trading?

Front-running is illegal and involves using non-public information about an impending large order to trade ahead of it. Latency arbitrage is a legal, high-frequency trading strategy where a firm exploits tiny price differences between exchanges by being faster.

While both rely on speed, front-running is based on informational advantage (insider knowledge), whereas latency arbitrage is based on technological advantage (speed and connectivity).

What Is Arbitrage and How Is It Related to Financial Derivatives?
What Is ‘Co-Location’ and How Does It Provide an Advantage to HFT Firms?
How Do Traditional Options Market Regulations on Front-Running Compare to Crypto Rules?
What Are the Consequences for Conducting an Illegal ICO?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.