easy · Market Microstructure
A high-frequency trader (HFT) notices that the price of a stock has just risen on the New York Stock Exchange (NYSE), but the price on a smaller exchange like BATS has not yet updated. The HFT buys on BATS and sells on NYSE milliseconds later. This is an example of:
- Wash Trading
- Fundamental Trading
- Latency Arbitrage
- Front-Running
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