What Is the Impact of Network Jitter on the Profitability of an RFQ Provider?
Network jitter is the variation in the latency of data packet delivery, causing inconsistent timing. High jitter makes it difficult for a quoting engine to predict the time-to-execution accurately.
This can lead to quoting stale prices or experiencing high slippage, directly eroding profitability. Consistent, low jitter is vital for high-frequency strategies to ensure that quotes are executed at or near the intended price.
Glossar
Network Jitter
Variation ⎊ Network jitter is the measurable variation in the time delay, or latency, experienced by successive data packets carrying market data or trade orders across a network path.
Jitter
Variance ⎊ Jitter, within cryptocurrency derivatives, represents the rapid, short-term fluctuations in asset prices, exceeding expected volatility models and impacting option pricing accuracy.