Latency

Latency, in the context of trading, refers to the time delay between the initiation of an order and its execution. It represents the speed at which trading actions are processed. High latency implies longer delays, while low latency indicates faster execution times, often measured in milliseconds. For traders, high latency can be detrimental as it introduces delays that can result in missed opportunities or less favorable trade execution. Therefore, minimizing latency is crucial for achieving efficient and timely trade execution in dynamic markets.