• High-speed data streams are ultra-low latency data connections that provide real-time information and execution for algorithmic and high-frequency traders.
  • High frequency traders are investing heavily to get the fastest networks and data streams to gain a competitive edge in trading.
  • The most important factor in determining latency is the distance the signal must travel, or the length of the physical cable (usually fiber optic) that carries data from one point to another.
  • Because light travels at 186,000 miles per second in a vacuum, an HFT company with servers co-located with an exchange will have lower latency—and therefore a trading advantage— than a competing firm located even a few miles away.