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Can internet latency cause issues with scalping US stocks?

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Rozzie212

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Hi Team,

I am wondering if the latency of the internet has made you unable to partake in scalping the US stocks when living in Aus? I am worried that a 300ms latency will cause issues, however, I don't know for sure. I traded FX for years and now I intend to scalp the US market, in and out in seconds. Is there anyone on here that trades this style and find that you don't have any issue?? utilising the tape and level 2 is how I will enter and exit. Can you still do this in Aus, all those miles away?

Any and all advise would be apricated.
 
Rozzie212 said:
Hi Team,

I am wondering if the latency of the internet has made you unable to partake in scalping the US stocks when living in Aus? I am worried that a 300ms latency will cause issues, however, I don't know for sure. I traded FX for years and now I intend to scalp the US market, in and out in seconds. Is there anyone on here that trades this style and find that you don't have any issue?? utilising the tape and level 2 is how I will enter and exit. Can you still do this in Aus, all those miles away?

Any and all advise would be apricated.
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I am not a trader, but I did see a news article once that showed that some traders in the USA actually rent space in the basement of the stock exchange to house their computers to try and prevent latency issues.

So I imagine that being on the other side of the world has its consequences if it’s speed you are chasing.
 
300ms in then 300ms out that's 600ms or a significant part of a two second trade. Yes, your autotrading software will have some problems getting the fills you want every time unless the market is very liquid. Spread will be your biggest enemy. You won't be able to compete against the market maker bots that are located within metres of the exchanges servers, if you want to trade the spread.

You'll have much less problems holding your trades a little longer, like a few minutes. If you're comfortable with less trades going for larger gains then you'll have no problems from Aust.

Your selection of stocks to trade for the day will be crucial. What's hot and moving one day may not be, the next.
 
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