Why is ping important when trading via a VPS-server for Forex

Ping is a diagnostic program, the concept of which was invented in 1983, which helps to determine the speed and integrity of an Internet connection. The algorithm is based on the principle of “sonar”: an information packet is sent over the network to a certain node, which is sent back to the user. The response time will show the connection loading/unloading speed, the number of received packets compared to sent ones will determine the integrity.

In a narrow sense, ping determines the time of “feedback” with a program controlled by remote access via a VPS-server. The parameter is measured in milliseconds, which shows the time difference between pressing a button on a personal computer and performing an operation by the VPS-server processor.

The ping speed for traders is equal to the speed of making a transaction, this indicator is necessarily present in any trading terminal. Let’s look at an example. Your MT4 trading terminal is installed on the VPS-server for Forex, and you have decided to open a purchase transaction. After clicking on the Buy button, your trade order to open a transaction is sent to the broker’s trading server, where it will be executed at the price at the time of arrival of your order. So, the speed at which your trading order will cover the distance from the trading terminal to the broker’s trading server is checked using ping.

Despite the” elusive” time interval, entering a position at the current market price with high volatility through a “slow” VPS for Forex can take up to one minute, during which the price can go up or down a hundred points.

THE PING SPEED IS AFFECTED BY FOLLOWING FACTORS:

• internet speed, server hardware performance;
• geographical location of the VPS for Forex;
• the number of “intermediary nodes ” at the provider between the backbone Internet and the local network.

More “fast” traders can change the current price on the market, as a result of which your request to open/close a deal may be rejected by the broker. A trader trading on the VPS for Forex will spend milliseconds to send a new offer, while a trader trading on a home computer will spend at least 5-10 seconds to send a new request.

At the first trades at the end of the XX century, the Internet speed was low, and the size of the ping did not worry traders because of the use of medium-and long-term strategies. It must be admitted that even today, traders who trade on large timeframes or use the tactics of pending orders neglect the convenience of trading through the VPS for Forex. But the rapid development of the communications infrastructure and electronic trading has led to the emergence of scalping strategies on the market, in which traders are fighting for every pips. A large number of transactions, high shoulders and speed are the formula for the success of any scalper. A properly selected VPS-server for Forex with a low ping can significantly increase the speed of order execution, thereby increasing the intraday profit of the scalper.

Traders who trade on news, the output of which in minutes brings income comparable to daily or weekly earnings, also carefully choose a VPS-server for Forex, paying special attention to ping. High volatility and a bad ping can cause the broker to reject the transaction due to price changes, leaving the trader with a loss.

When a trader chooses a VPS-server for Forex, he should definitely pay attention to the ping and choose the lowest parameters. But is it always possible to believe what is written on the website of the company offering VPS for Forex. It is best to take a test access and check the ping to the trading server of the broker you need yourself. How to do this you will learn by reading this instruction.