The delay between sending an order and it being received and processed by the broker's server. This is part of the mechanical toolkit traders rely on to control entries and exits with precision rather than reacting to price in real time.
The delay between sending an order and it being received and processed by the broker's server. This is part of the mechanical toolkit traders rely on to control entries and exits with precision rather than reacting to price in real time.
Higher latency increases the chance of slippage, especially for scalpers. This is the kind of nuance that separates experienced market participants from beginners, since it only becomes practically useful once the basics are second nature.
Traders near broker servers or using VPS hosting often report lower latency. It shows up in day-to-day trading through price charts, broker platform data, or news commentary, and recognizing it quickly can meaningfully shape decision-making in the moment.
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