4 ms·
Network delay variance over distances is much greater than the timescales at which HFTs function. That's why HFT equipment is always so close to the exchange it
by abpavel 10y ago
Network delay variance over distances is much greater than the timescales at which HFTs function. That's why HFT equipment is always so close to the exchange itself.
- cturner 10y agoBut it's not significant in the domain this thread is focused on. In order to lose signal to an rival in this scenario, the delay between your Order A hitting Exchange A and your Order B hitting Exchange B would need to be sufficient to give the rival time to learn the signal, and then to act on it. At a minimum, that is half the cost of the round-trip time between the Exchange A colo and the Exchange B colo. So long as you're not introducing such substantial delays in your order dispatch, you're fine.