NDD Glossary
MetricIntermediate

Latency

The time delay between submitting a trade order and its execution, typically measured in milliseconds.

Last updated: February 1, 2026
1

The client's platform sends the order over the internet to the broker's server.

2

Network latency accounts for the transmission time (varies by geographic distance and connection quality).

3

The broker's matching engine processes the order, adding processing latency.

4

If routing externally, additional latency is incurred communicating with the LP.

5

The LP processes and responds, and the confirmation travels back through the chain.

6

Total latency is the sum of all these components, typically measured in milliseconds.