Latency represents the time lost when placing an order, encompassing the duration for the order to reach the trading destination or exchange. It reflects the time needed to process market data, manage order routing, and various related tasks.
In high-frequency trading (HFT), even milliseconds can significantly impact profits. Reduced latency allows traders to execute orders swiftly, capitalising on price discrepancies. Factors affecting latency include network infrastructure, processing speed, distance between trading servers, and data transmission methods. Minimising latency is crucial for HFT, where split-second advantages can yield competitive edges.
uTrade Algos as tried up exclusively with Share India, one of India’s largest brokers to minimise latency, reduce delays and gain faster execution speeds, enhancing their ability to seize market opportunities swiftly. Understanding and managing latency is vital in today’s electronic trading landscape since they influence trading strategies and outcomes significantly.