When a trader places a trade on the trading platform the command travels to the broker’s server in the form of an electronic impulse to execute the live trade.
Due to the nature of physics, you will have to face some transmission delay during the whole process. The transmission delay is often referred to as latency in the world of forex.
If a trader has higher latency with their broker server then chances are very high that their orders will be never filled at the desired price due to the high latency.
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