CompTIA Cloud+ (CV0-004) Practice Exam 2025 – Your All-in-One Guide to Cloud Certification Success!

For applications such as high-frequency trading, low transaction latency is a critical requirement. In high-frequency trading, decisions are made and transactions executed in fractions of a second. Delays, even by milliseconds, can result in significant financial losses, as trades need to be executed faster than competitors.

Low transaction latency ensures that data is transmitted and processed as quickly as possible, allowing traders to react in real-time to market fluctuations. This requirement is fundamental because it directly affects the ability to capitalize on minute price variations, which is the essence of high-frequency trading strategies.

While high-volume data processing, complex algorithm execution, and data redundancy are important aspects of many applications, they do not have the same immediate impact on the performance and success of high-frequency trading as minimizing latency does. Therefore, the speed of transactions takes precedence.