Having the servers at the co location of the exchange ; has any better advantage to the traders broker;; comparatively?

General
1

Having the servers at the co location of the exchange ; has any better advantage to the traders broker;; comparatively ?

2

Being in exchange Colo means people who trade using algo’s get a speed advantage. So if your trading strategy requires you to be faster (I am talking micro seconds or 1/100000th of a second speeds and strategies like cash-fut arbitrage, market making, etc), then there is an advantage for the trader to be on exchange colo. More than 99% of people trade low latency directional strategies, these speeds don’t really add value, so being on colo or not doesn’t make a difference.

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3

Does Zerodha prop desk use co location to take trades?

4

Nope.