Latency

Latency – The delay between sending a request (like an order) and receiving a response. In trading, latency includes network, processing, and execution delays. Lower latency means faster reaction to market changes. Latency is known as “the delay between initiating and executing an action”. High latency can hurt a robot’s performance, as prices may move significantly during the delay. To minimize latency, automated systems often use optimized networks and local order routing. In backtesting, robots sometimes assume a fixed latency to simulate real conditions.

⬅ Robots Glossary