When considering the basics of low-latency optimization for traders, it is essential to consider the Local Network Infrastructure (LAN), the layer over which your hardware sends and receives messages from other computers. Lots of people confuse the importance of bandwidth and latency in this area. Using a car analogy: bandwidth is our top speed, and latency is our acceleration. The concepts of bandwidth and latency are intertwined, but they are not the same thing. When it comes to a LAN, the basic emphasis is on Bandwidth. Work with a good Network Engineer to ensure that the path from your computer hardware to the next layer is optimized.
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