This study investigates the influence of relative tick size on low-latency trading (LLT) activity within the Australian equity market. Using an extensive dataset spanning 2008–2017, the analysis reveals a significant inverse relationship between relative tick size and LLT engagement. LLTs are shown to have a very low tolerance for adverse selection risk, and their risk-averse nature prioritise risk minimisation (order-undercutting) over profit maximisation (order-queuing). These results suggest that LLTs focus on generating marginal profits through repeated, low-risk trades, underscoring their fundamentally risk-averse nature. The evidence implies that policymakers may implement a dynamic tick size policy to direct LLT activity towards stocks where it enhances liquidity, while tempering LLT effects in stocks where it may compromise market quality.