easy · Market Microstructure
A high-frequency trader detects a large buy order on the NYSE. They immediately buy 2,000 shares on the BATS exchange at the stale 50.05 ask before the BATS quote updates to 50.10.
Which microstructure pathology is this trader exploiting?
- Front-Running
- Spoofing
- Wash Trading
- Latency Arbitrage
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