Latency, the time it takes for your trade order to reach the market and back, can be a big deal if you’re a day trader.
Imagine you’re trying to capitalise on a sudden price spike.
If your order takes too long to execute, you might miss out on the best price, or worse, your order might not even fill. That’s the impact of latency.
While professional traders and high-frequency firms obsess over milliseconds, even a few hundred milliseconds can hurt your day trading performance.
However, while striving for efficiency is essential, it’s important to remember that not all trading strategies require ultra-low latency.
For example, a well-defined ‘swing trading’ strategy can help you succeed without competing with high-frequency trading firms.
