Why High-Frequency Trading Firms Keep Using Bare Metal Servers Instead of Cloud
High-frequency trading firms still run their systems on physical bare metal hardware rather than cloud platforms, because speed is central to their business. Cloud servers rely on virtualization, which adds overhead and unpredictable delays known as jitter. Firms also co-locate their servers near exchange data centers to minimize the physical distance that light must travel. Public clouds carry a "noisy neighbor" risk, where other tenants can consume shared resources and cause costly lag during volatile markets. Bare metal allows firms to tune hardware and network components directly, delivering consistent, low-latency performance.
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