Virtualization is the technology that allows one physical server to host multiple isolated virtual machines. A hypervisor splits the host’s CPU, memory and storage into separate “slices,” each running its own OS. This is the foundation of VPS hosting. For forex traders, virtualization means you get a secure, independent environment on powerful datacenter hardware. The advantage is cost-efficiency and easy scaling: providers can spin up or reallocate virtual servers instantly as needed. Each trader’s VPS is insulated from others, so one user’s crash won’t affect another. As FXVM notes, virtualization “manages the partitioning” of hosts so “each sub-unit runs its own isolated OS”, giving traders a dedicated-like server experience at a fraction of the price.

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