Fig. 1
From: Latency arbitrage and the synchronized placement of orders
Latency Arbitrage Triangle. An investor I, who sends orders to exchanges L and S, faces three different outcomes. Top left: the large exchange L reveals the trade, and the HFT front-runs the investor’s order to the small exchange. Top right: the small exchange S reveals the trade, and the HFT front-runs the investor’s order to the large exchange. Bottom left: orders are executed “simultaneously”