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The last point to look at is the latency associated with a transaction. The extremely short time period associated with a trade like this makes it hard to attain at times. You might have to be very persistent or quick to complete one of these trades. The latency is the time needed for data to travel from one point to the next. It is often measured in milliseconds. Some brokers work with trades with a latency total of about 10 to 15 milliseconds on average, but microwave transmission technology has made possible for some trades to happen in about 8 milliseconds.
So, what makes this minimal time so important? You need a lower latency time to ensure you have transactions complete. A stock can go up or down in value in seconds. This is even more important when engaging in a high-frequency trade. Of course, the latency time is an important measurement to consider no matter what type of investment you are considering.
