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Benefits Of Using A Forex VPS: Latency

In the volatile world for forex it’s no secret that every millisecond counts. The matter of just a few seconds will make the difference of where your order is filled, thus eating away at your profits or amplifying your loses.

For example: let’s say that you are trading from your home PC in Europe, and your broker’s trading server is in NYC. You send an order to buy 1.0 lots of EUR/USD at 1.08450. However due to the distance and network latency/delay your order actually gets filed at 1.08455. This is a difference of 5 pips! When using the trading volume of 1.0 lots, this is equal to losing $5 just because of the network latency/delay. Imagine how much money is lost when you multiple this by 10 or 20 or even 100 trades!

However NYCServers is here to help! With our VPS service traders can run their trading platforms on a remote computer that is very close to their broker’s server. This means that your order will have less distance to travel, giving you better order executions (thus more potential profit)

Here is a great visual example:

In this example, the trader is the blue dot. Their broker’s server is the green pin.

As you can see orders must travel a great distance before it reaches the broker’s server. Now let’s see how that changes when the trader uses a VPS…

Now the broker is the blue dot, and the trader’s VPS where their trades are coming from is the green dot.

As you can see by using a VPS the trader has greatly reduced the distance that their order must travel to reach the broker’s server. This will result in faster order execution times, and potentiality more profit for the trader!

If you have any questions about our VPS service please contact us anytime by emailing sales@newyorkcityservers.com. We are always happy to help!

 

Nick

 

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