The time delay between a trading instruction being sent and that action being executed/confirmed. In trading terms, latency is the delay between your forex robot sending an order and the broker executing it. High latency (e.g. due to a slow internet connection or a server far from the broker) can result in orders filling a few milliseconds or more later, potentially at a worse price (slippage) if the market moves. Low latency is crucial for high-speed or high-frequency trading algorithms – it means faster order execution and possibly better prices. Using a VPS located near the broker’s servers or opting for brokers with fast execution infrastructure can greatly reduce latency. For most swing or longer-term EAs, a slight delay isn’t critical, but for scalpers or news-trading robots, latency can make or break performance.

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