low latency algorithmic trading

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What is low latency algorithmic trading?

Low latency algorithmic trading is a process for carrying out orders using automated and pre-programmed trading directions to account for different prices, timing and volume. Faster execution is achieved through low latency, which delivers data under a millisecond in order to make faster decisions.

There are many factors that can impact the low latency of algorithmic trading, such as the distance between the exchange and the trading system and the efficiency of the trading system architecture. This architecture might include network adaptors, the operating system choice, code efficiency and programming language.

Algorithmic trading is mostly used by institutional investors and big brokerage firms to reduce the expense associated with trading.