Co-Location Latency Savings - Quant Trader Interview Question
Difficulty: Easy
Category: Market Microstructure
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Topics: latency, co-location, speed-of-light, market-microstructure
Problem Description
A high-frequency trading firm decides to co-locate its servers within the exchange's data center. Estimate the approximate round-trip latency saved by co-location compared to a scenario where the firm's server is located 50 miles away from the exchange. Assume the signal travels at the speed of light through fiber optic cable.
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