Online games are sensitive to latency (
lag), since fast response times to new events occurring during a game session are rewarded while slow response times may carry penalties. Due to a delay in transmission of game events, a player with a high-latency internet connection may show slow responses in spite of appropriate
reaction time. This gives players with low-latency connections a technical advantage.
Capital markets Joel Hasbrouck and Gideon Saar (2011) measure latency to execute financial transactions based on three components: the time it takes for information to reach the trader, execution of the trader's algorithms to analyze the information and decide a course of action, and the generated action to reach the exchange and get implemented. Hasbrouck and Saar contrast this with the way in which latencies are measured by many trading venues that use much more narrow definitions, such as the processing delay measured from the entry of the order (at the vendor's computer) to the transmission of an acknowledgment (from the vendor's computer). Trading using computers has developed to the point where millisecond improvements in network speeds offer a competitive advantage for financial institutions.
Packet-switched networks Network latency in a
packet-switched network is measured as either
one-way (the time from the source sending a packet to the destination receiving it), or
round-trip delay time (the one-way latency from the source to the destination plus the one-way latency from the destination back to the source). Round-trip latency is more often quoted because it can be measured from a single point. Many software platforms provide a service called
ping that can be used to measure round-trip latency. Ping uses the
Internet Control Message Protocol (ICMP)
echo request which causes the recipient to send the received packet as an immediate response, thus it provides a rough way of measuring round-trip delay time. Ping cannot perform accurate measurements, principally because ICMP is intended only for diagnostic or control purposes, and differs from real communication protocols such as
TCP. Furthermore,
routers and
internet service providers might apply different
traffic shaping policies to different protocols. For more accurate measurements it is better to use specific software, for example:
hping,
Netperf or
Iperf. However, in a non-trivial network, a typical packet will be forwarded over multiple links and gateways, each of which will not begin to forward the packet until it has been completely received. In such a network, the minimal latency is the sum of the transmission delay of each link, plus the forwarding latency of each gateway. In practice, minimal latency also includes queuing and processing delays.
Queuing delay occurs when a gateway receives multiple packets from different sources heading toward the same destination. Since typically only one packet can be transmitted at a time, some of the packets must queue for transmission, incurring additional delay.
Processing delays are incurred while a gateway determines what to do with a newly received packet.
Bufferbloat can also cause increased latency that is an order of magnitude or more. The combination of propagation, serialization, queuing, and processing delays often produces a complex and variable network latency profile. Latency limits total
throughput in reliable two-way communication systems as described by the
bandwidth-delay product.
Fiber optics Latency in
optical fiber is largely a function of the
speed of light. This would equate to a latency of 3.33
μs for every kilometer of path length. The
index of refraction of most fiber optic cables is about 1.5, meaning that light travels about 1.5 times as fast in a vacuum as it does in the cable. This works out to about 5.0 μs of latency for every kilometer. In shorter metro networks, higher latency can be experienced due to extra distance in building risers and cross-connects. To calculate the latency of a connection, one has to know the distance traveled by the fiber, which is rarely a straight line, since it has to traverse geographic contours and obstacles, such as roads and railway tracks, as well as other rights-of-way. Due to imperfections in the fiber, light degrades as it is transmitted through it. For distances of greater than 100 kilometers,
amplifiers or
regenerators are deployed. Latency introduced by these components needs to be taken into account.
Satellite transmission Satellites in
geostationary orbits are far enough away from Earth that communication latency becomes significant – about a quarter of a second for a trip from one ground-based transmitter to the satellite and back to another ground-based transmitter; close to half a second for two-way communication from one Earth station to another and then back to the first.
Low Earth orbit is sometimes used to cut this delay, at the expense of more complicated satellite tracking on the ground and requiring more satellites in the
satellite constellation to ensure continuous coverage. ==Audio==