Latency-driven trading describes a rading strategy that attempts to profit from latency differentials across traders or trading platforms.
Latency-Driven Trading
Related Terms
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Latency is the delay between the transmission of information from a source and the reception of the information at its destination. One specific example is the time that elapses between the...
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Carry trade is a widely-used trading strategy that involves borrowing in a low-interest-rate currency and investing in a high-interest-rate currency to profit from the interest rate differentials. This strategy is particularly popular in the foreign exchange market, where traders seek to capitalize on the differences between countries’ interest rates. Let’s explore the concept of carry […]
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Hold time is a discretionary delay between order reception and execution. Hold time measures the discretionary element of execution latency, which is the time observed by the trader between placing...
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Tomorrow Next efers to a short-term forex transaction in which a currency pair is simultaneously bought and sold with two different value dates.
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Profit factor is a ratio that compares the total profits generated by winning trades to the total losses incurred by losing trades.