Latency is the delay between the transmission of information from a source and the reception of that information at its destination. In other words, latency is the time it takes for a signal to travel from point A to point B.There are many factors that can contribute to latency, including distance, obstacles, and interference. One specific example is the time that elapses between the placement of an order in an electronic trading system and the execution of that order. This type of latency can have a significant impact on traders, as even a small delay can mean missing out on an opportunity or making a bad investment decision.Fortunately, there are ways to minimize latency and keep it from impacting your trading performance. By understanding what causes latency and taking steps to reduce it, you can trade with confidence knowing that you're getting accurate information in real-time.
