Latency Component Breakdown

How to Read This Diagram

Total execution latency is the sum of seven sequential stages, each contributing a measurable delay. The diagram shows the outbound path only -- the return path (fill confirmation back to client) adds approximately the same network and processing latency.

Latency by Component

The Dominant Factor

In most retail setups, LP processing time (especially last-look duration) dominates total latency. A broker can optimize gateway, bridge, and network components, but the LP's hold window is outside broker control. The second largest factor is typically client-to-broker network distance, which depends on the client's geographic location relative to the broker's data center.

Optimization Strategies

• Co-location: Placing broker servers in the same data center as LP matching engines eliminates broker-to-LP network latency (reduces to sub-1ms).
• VPS proximity: Clients using VPS servers near the broker's data center reduce client-to-broker latency to 1-5ms.
• Bridge optimization: Modern bridges process orders in under 2ms; legacy bridges may take 5-10ms.
• No-last-look LPs: Eliminating the LP hold window removes the single largest variable, bringing total latency below 30ms in optimized setups.