Speed and latency: how much does it matter for your strategy?
For scalpers and news traders, milliseconds matter; for swing traders, they don't. The honest question is where your strategy sits — and whether you're paying for speed you don't use.
What's your answer?
- the latency your strategy actually tolerates
- how you measured your fills
- the speed upgrades that did or didn't help
The bid, ask and slippage guide explains where the time goes.
Background: Bid, ask and slippage: why your order fills at a different price
Why buy trades open at one price and close at another, why a stop can trigger when the chart never touched it, and how slippage happens.
Why did my stop-loss trigger when the price on the chart didn't reach it?
Charts usually show the bid price, but a sell position's stop is triggered by the ask. If the spread widened, the ask could have touched your stop while the bid line stayed away from it.
What is slippage?
The difference between the price you expected and the price your order was filled at. It is most common in fast or thin markets, such as around news releases.
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