Co-location

Co-location is renting rack space in or next to an exchange's data centre so that the physical distance to the matching engine is as short as possible. It is sold openly by exchanges and is not itself a form of manipulation.

market microstructure · updated 2026-09-08

See also

• High-frequency trading — High-frequency trading is automated trading characterised by very short holding periods, high message rates and co-located infrast…
• Latency arbitrage — Latency arbitrage is profiting from being able to act on a price change before slower participants can update their own quotes. It…

Terms that refer here

High-frequency trading · Latency arbitrage

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