Traders Feeling the Impact of Server Technology and IT Infrastructure Choices

“Recent studies show that a 5 millisecond server delay could cost a firm as much as 4 million USD every millisecond”

A stark reminder of just how influential technology can be in the daily lives of traders, but how many really give thought to the technology they use on a daily basis? Recent reports suggest not many, with few traders having a deep inner knowledge of the technology they use.

Many would of course argue why would they need to, but some of the truly successful traders are using their knowledge of this to their advantage. So what should traders be looking at?

Every solution is of course bespoke and this in turn is part of today`s challenge. There are also many types of traders so there is some generalization here. In truth, most traders use some form of server to power their trading activities. These come in all shapes and sizes and many traders fall into the trap of thinking that it is all about hardware. It is easy to see why but of course there is much more to it than that.

 One of the most important things for traders to develop is their relationship with their technicians. Technicians come from all walks of life and in many instances won’t come from a trading background. While these do an excellent job it is often easy for them not to see things that traders do. So the value comes in working together to deliver a well optimized setup for both individual traders and the company.

While traders need to work closely with their technicians there are a number of things they should look at with their technicians. This includes a number of areas including security, location and speed. As highlighted at the beginning of this 

story speed is a huge issue for traders. A delay can cost millions and with over   4 trillion being traded each day things can become congested.

So traders should check several things in relation to speed. One of the most important is their internet connection. This is often overlooked but a vital component of trading activities online. Traders should not rely on one source but look to have several outlets. Time should also be spent reviewing CPU speeds and capacity.

Location is another key issue. Ideally traders will want their servers located near their brokers. This will help with connection speeds. Geographical location is also an important factor. Most companies outsource their server needs and it is therefore important to ensure that the server is located in a geographically stable location. Switzerland would be a prime example of this.

Finally traders should pay close attention to server downtimes and work out a detailed plan with their technicians. Down time can cost traders a lot of money and is the difference between a successful and non-successful day. Planned maintenance schedules are very important.

As with many things in life it is crucial to have a good plan and work to specific deadlines. This will avoid confusion and as traders develop their knowledge further they will be able to get the best out of the technology they use. This should be one of many things in a successful trader’s armory. 

 Source: Artmotion Ltd