By 2005 we were approaching the one-millisecond barrier for latency arbitrage
Everything you need to know, in one soundbite.
Everything you need to know, in one soundbite.
Why is this the only topic discussed by HN where technology suddenly becomes this frightening bogeyman?
Front running would be if you were say sitting on a broker desk and one of your clients rang up and said to buy lots of A. Then you put in your own buy order before the clients one hits the market. That is front-running. You got in before that knowledge become public. Do you see the difference?
Arbitrage requires that you cross the trade. You've merely described a following Algorithm. One that leaves open long positions.