If you’re looking to gain more control over your forex trading software, tools, and applications, hosting them on a dedicated server can be an effective solution. While you don’t need to be an expert to use dedicated servers, it’s helpful to know some of the most common terms used in the industry.
Understanding these terms will help you set up your own server and choose the provider with the best hosting plans. In this article, you’ll find the seven most common dedicated server terms and their definitions to help you get started.
Hardware terms
Dedicated servers rely on both hardware and software to create a digital and physical environment for your applications.
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CPU
The central processing unit, or just the CPU, is like the “brain” of your server. It processes data signals and allows you to perform computing tasks. The CPU capacity is measured in processing units called cores. The more cores a CPU has, the faster the server or device is, because it can process more tasks at once. For example, a 4-core CPU can handle multiple trading platforms better than a 2-core CPU.
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RAM
Random access memory, or just RAM, is the server’s working memory. It’s a temporary storage area in the server where active programs run and store their data. The more RAM your dedicated server offers, the faster your programs and tasks will run. For example, 16GB of RAM can handle more applications and software compared to 6GB of RAM.
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Storage
Dedicated servers have multiple storage types. You might come across terms like HDD (Hard Disk Drive), SSD (Solid State Drive), or RAID. An HDD is a traditional storage option that’s often slower compared to an SSD, which is the industry standard nowadays. The RAID system is used for data redundancy and performance, as it backs up data across multiple drives.
Network and software terms
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Bandwidth
The bandwidth of your dedicated server refers to how much data it can transfer at once. The higher the bandwidth, the better your connection to the network. With high bandwidth, you can perform tasks faster with less downtime. Bandwidth is measured in megabits per second (Mbps). Most dedicated server providers offer around 100 Mbps, which is good for most trading setups.
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Latency
Latency is the time it takes for data to travel to and from your server. The lower the latency, the faster you can perform trades and experience less trading slippage. Usually, the location of your server and your broker’s server determines latency. Therefore, a service provider might not be able to ensure the lowest latency if they don’t have physical servers close to you or your broker.
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Root access
Root access gives you full control over the server. When you purchase a dedicated server, you get root access, which allows you to manage your server as you please. For example, you can install different types of software, modify all server settings, customize your security parameters, or set up custom trading tools.
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Uptime
Uptime describes the time the server stays running without interruption. Most server providers offer 99.9%+ guaranteed uptime, which means that you’ll experience less than 9 hours of downtime per year.
