Packet Delay Variation

Packet delay variation is a measure of the change in the time between consecutive packets in a stream. It is a technical indicator of network health and stability, directly impacting the quality of real-time financial data.

High variation makes it challenging for trading algorithms to interpret market signals correctly, as the data may arrive out of order or with inconsistent spacing. Traders use this metric to evaluate the performance of their connectivity providers and to adjust their trading strategies accordingly.

It is a key factor in the overall study of market microstructure and data feed reliability.