LowLatencyOptionen
LowLatencyOptionen is a term used in financial markets to describe infrastructure, practices, and strategies aimed at minimizing latency—the time between an input or signal and the corresponding execution of an order—in options trading. It encompasses both technology and process improvements that reduce the delay from market data receipt to order placement and trade confirmation.
Many implementations rely on co-location at exchange data centers or heavily optimized pathways, use of direct
Applications include market making, stat arb, and price discovery strategies that rely on sub-millisecond or microsecond
History and context: since the rise of electronic trading in the 1990s, market participants have pursued ever
Critiques note that the cost, complexity, and diminishing marginal gains can raise barriers to entry and raise