📖 Financial Lexicon Term
What is VPS?
Virtual Private Server. A remote computer rented by a trader to host their trading platform and EAs 24/7.
Detailed Explanation
Running an Expert Advisor requires the trading terminal to be open constantly. Instead of leaving a home PC on (risking power outages or internet drops), traders rent a VPS located physically close to the broker's servers in London or NY to achieve ultra-low latency execution.
💡 Practical Trading Example
By renting a VPS in the Equinix NY4 data center, an algorithmic trader reduces their execution latency to 1 millisecond.