High-frequency trading has already evolved itself through technology since 2005. This type of trading created electronic algorithms that had helped many traders continue their investment with significant trading techniques. They trade various financial instruments in a short while without holding back from their positions, be it a sell or a buy for an exchange.
The Foreign Exchange market is an online infrastructure where most of the economical state circulates. Here, speed is an edge to every Forex trader and the average latency should be at least between 1-3ms. Traders can check their broker’s latency online through VPS hosting providers. Once a trader maintained this algorithm, decisions are easier to make, thus becoming a streamlined trader.
So, here is how to keep a low latency trading in the Forex market:
Ensure your optical network for trading
There are three factors that cause lagging or delays in Forex trading if you don’t pay attention to your connectivity which are thru optical networks. Thus, you need to know that these delays are due to the fibre optic cable length, fibre access points, and the equipment itself.
Your hardware at home such as CPUs, NICs, middleware applications, etc., should be maintained regularly and pass the various software testing methodologies.
Install hardware firewall on servers
Hardware firewalls are important for all online activities because without them it’s as if you left your house with your doors unlocked. This firewall is for the safety of all the data stored on your devices but first, identify your needs before having one.
In relation to trading, it’s a need to have a hardware firewall on your operating system whether you’re using Windows or Linux. There are firewall protections that may affect the low latency but at least keep your server away from malicious attacks.
Enhance your network
Low latency trading has something to do with your network between your device and the platform where the exchange is happening. This also affects your physical connector or the fibre optic cables that transmit data from and to both ends every millisecond.
That’s why it is recommended that you should invest in a forex dedicated server that can cater to complex programmed algorithms and heavy trading software or platform. The TradingFX VPS provides servers that will enhance your network just within a rack that was designed earlier in 2012. Make sure to avoid relying on a shared algorithm that may lead to unexpected cyber hacking.
Find a competent network solution provider
When you trade, it doesn’t only need you and your broker. You should have an access to solutions that are readily available when system glitches occur. However, you need to consider the effect when adding electronic or programmed solution providers because these may increase your latency and fail to absorb new updates.
At TradingFX VPS, customer service is guaranteed and they also have virtual private server hosting plans to keep you out of trouble.
Trade as quick as you can
As we wrap up our simple how-to’s, always pay attention to time in the Forex trading market. As you enjoy low latency trading, bear in mind the risks you are willing to take so you can cast them out for a more reliable trading experience.