Max Fibre

What causes latency in Fiber Optic?

in Fiber Optic Networks

As we are very much aware that Internet traffic is growing very fast. The more information we are transmitting the more we need to think about parameters like available bandwidth and latency. Bandwidth is usually understood by end-users as the important indicator and measure of network performance. It is surely a reliable figure of merit, but it mainly depends on the characteristics of the equipment. Unlike bandwidth, latency and jitter depend on the specific context of transmission network topology and traffic conditions.

Latency is a critical requirement for a wide set of applications mentioned above. Even latency of 250 ns can make the difference between winning and losing a trade. Latency reduction is very important in financial sector, for example, in the stock exchange market where 10 ms of latency could potentially result in a 10% drop in revenues for a company. No matter how fast you can execute a trade command, if your market data is delayed relative to competing traders, you will not achieve the expected fill rates and your revenue will drop. Low latency trading has moved from executing a transaction within several seconds to milliseconds, microseconds, and now even to nanoseconds.

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