What Is the Relationship between Network Jitter and the Slippage Experienced in Trade Execution?

High network jitter means market data arrives at inconsistent intervals, making it harder for the quoting engine to predict the current fair value. This inconsistency increases the chance that the quoted price becomes stale before the RFQ is executed.

When the trade executes at a price worse than the quote, slippage occurs. Therefore, higher jitter generally leads to increased and unpredictable slippage, negatively impacting trading P&L.