Packet Jitter

Packet Jitter refers to the variation in the latency of received packets over a network connection, which can disrupt the timing of market data processing. In trading, consistent latency is often more important than absolute speed; high jitter makes it difficult for algorithms to predict when the next update will arrive.

This instability can lead to gaps in data streams and inconsistent execution performance. Jitter is often caused by network congestion, improper routing, or resource contention within the exchange or internet service provider infrastructure.

Traders must employ jitter-buffering techniques and optimized network stacks to mitigate these effects. Managing jitter is crucial for maintaining the precision of time-sensitive quantitative models.