Low Latency Trading

Latency refers to the delays that affect the processing of data in an electronic network. Low latency network connection experiences small delays, a high latency connection suffers long delays. Low latency trading refers to trading between a financial institution's computer system and that of a stock exchange or electronic communication networks (ECN) using a low latency connection.

See also: Algorithmic Trading, Dark Pools, Co-Location, Flash Orders, ECN