What Is Latency and it's impact in Forex trading?
In simplest terms, “latency” is defined as being any delay or lapse of time between a request and a response. As it pertains to trading, latency directly influences the amount of time it takes for a trader to interact with the market.

Latency is the amount of time that it takes for a signal to be sent from your trading platform, received by your broker, and responded to.

Our EA does very fast scalping. It is very sensitive with the market price movements. So to achieve better results, ultra low latency and fast execution speed is required.

How you can get very low latency?
With the help of VPS you can have low latency, but for this you must choose correct VPS. Every VPS has different latency with different broker, because VPS server location plays a vital role regarding this.

So before subscribing a VPS you must enquire with VPS company about latency for your broker.

What is the optimum latency value?
Latency is measured in milliseconds(ms). For our scalper EA we suggest to have less than 10ms latency time. As low you have you will get better performance of Scalper EA.

How you can check latency in your own computer and on VPS?
First of all you need to know the IP address of your broker server. Suppose you have logged in to your IC Markets Demo account using the server ICMarkets-Demo03 as following. Now we have to find the IP address of ICMarkets-Demo03.

Now in MT4 terminal open File > Open Data Folder and go to config folder as following:

Now double click on file name ICMarkets-Demo03 and open with the help of notepad. Now you can see the IP address as following. Please note it down (in our case IP address is 51.254.68.2)

Now we have IP address(51.254.68.2) of our ICMarkets-Demo03 server. Now to check the latency of this server, open Command Prompt and give the command Ping 51.254.68.2 as following:

As above you are seeing that, here time=73ms etc. This is the latency time. It should not be more than 10ms to get good results for a Good Scalper EA. It is very easy to achieve ultra low latency with the help of a correct VPS.

Thank you!