What is Latency arbitrage, stale-quote sniping, latency race?

Latency arbitrage is trading on a price that public information has already made wrong, before the trader who posted it can correct it. Stale-quote sniping is its commonest form: taking a resting quote that a move elsewhere (another venue, a related instrument, a news release) has left behind. A latency race is the contest that follows each such event: the snipers’ orders and the liquidity provider’s cancel all head for the matching engine, and the first to arrive decides whether the quote is taken.