In the world of trading, latency refers to the time it takes to send a trade order from your location to the location of your broker. Latency is a measure of delay, to put it simply.
Latency, in this context, refers to the time that goes between a price quotation and the confirmation of a transaction. Factors like geographical distance and bandwidth congestion might cause a delay.
Let's pretend you're going to an Ed Sheeran performance and you're looking for tickets. If you camp out in front all night, you're more likely to receive the ticket you want than someone who has to get out of bed and travel in the morning. To acquire the best seats, you must be quick!
Meaning, if you're thousands of miles away, you'll never receive the seat you want since physically closer people will get it. If you desire the price you see on your screen while trading, you had better be the first to get it! And you can only obtain it first if you're standing right next to the broker's live server. If you're sending a transaction from London to New York, even if it only takes a fraction of a second (100-200ms), that's slow! If you were in New York, where your broker's server is located, you'd be much faster.
To ensure the lowest possible latency, you'll need a VPS service provider who can meet your needs.
What is Low Latency VPS in Forex Trading?
Your trades will execute faster if the latency is minimal. Your Meta Trader algorithms will receive signals in milliseconds if you use a low latency VPS. They will execute your orders before your competitors if they receive alerts faster than others.
Important Information:
Some brokers have servers in several different locations. They may set up your account at a different place than the one you tested here.
Our Recommendation:
To begin, open a trading account with your broker. Determine where your trading account is located. Purchase the forex VPS) that is closest to your trading account's location based on your trading account's location.