Server latency is the round-trip time it takes for a trading bot's order to travel to the broker's server and back, primarily influenced by physical distance. This delay is critical because it causes slippage—the difference between the expected and executed price. High latency and the resulting negative slippage can make profitable short-term strategies, like scalping, unprofitable. The primary solution for minimizing latency and improving execution speed is to run the bot on a Virtual Private Server (VPS) that is co-located in the same data center as the broker's trading server, reducing the physical distance to mere feet. The Millisecond Edge: Server Latency & Execution Speed for Bots In a competitive online game, a player with a high "ping" (latency) is at a...
