Why latency is crucial in managing trading algorithms?

In pure engineering terms, latency is understood as the time between an action and its result. In the world of information processing, latency can be the time between when an action is entered and the results are displayed.

In the financial sector, results are measured by benefits. One contribution to these benefits is the number of transactions processed per minute (TPM). In computing it is measured with milliseconds and nanoseconds.

However, if there are thousands of transactions per minute, the transactions are actually processed in nanoseconds. In each transaction, whether it is an authorization of a bank card operation, purchase and sale of shares or any other financial transaction, the process must be carried out without errors and in many cases practically in real time, with zero latency.

Multinational investment banks, stock markets, clearing houses... need to get the most out of real-time market data and the processing of this information.

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