Glossary: What is Low-latency Trading Infrastructure?

Low-latency trading infrastructure enables ultra-fast trade execution, leveraging advanced networks and colocated servers.

Low-latency Trading Infrastructure What is Low-latency Trading Infrastructure? Low-latency trading infrastructure refers to the advanced systems and networks designed to execute trades at extremely high speeds, minimising delays and maximising efficiency. Explanation This infrastructure includes colocated servers, optimised routing paths, and low-latency connections to financial exchanges. It is crucial for high-frequency trading and competitive market participation. Practical Example of Low-latency Trading Infrastructure A hedge fund deploys low-latency trading infrastructure near major stock exchanges to gain a time advantage in executing large-volume trades.