If you just send limit orders to the exchange to sit there, then you also don't need colocation or any HFT like structures ... Your order sits at the exchange, no matter how you place it (at least for regular limit orders, other order types are most likely not held at the exchange but at your brokers server or on your local machine depending on what service you use to execute). Colocation is only useful for automated strategies that use market type orders. For limit orders that stay in the book some time before they get executed it makes absolutely 0 difference. If you are manually trading on a colocated server you are only adding an extra step which equals to even more potential delay, you need to connect to the server in the first place since you are still pressing the buttons from your own home or office. Colocation only makes sense if the trading is actually happening from the actual server without external intervention. Also, you can't get negative slippage on regular limit orders in the first place. Limit orders only fill at the price you want, or beter, but i think i never experienced the latter . But getting positive slippage wouldn't be a bad thing.
Globex is basically FIFO. So get your limit order in the queue and get filled. I've on occasion gotten a better fill. Though some of those times it was because it started going ... the "wrong" way lol.
LOL, you're not the only one who has gone thru "sudden reversal fill" We all been there to hell and back...
guys please. what this guy is asking for is 4 digits/month minimum plus he needs a decent account size to use a prime broker that is close to the exchange he wants to trade at. Every order goes to the broker first for risk and margin checks. No retail broker has its server colocated
Some brokers do have co-location services however. https://offers.ampfutures.com/colocation-pricing-server-specs-request
We know it is for data through CQG, and I am going to assume that it is also for risk checks, since AMP is located in the CBOE building next to the exchange. But I may be wrong. Let's ask! @AMP_Global
He just said he just wants to place limit orders and wait until they get filled, a few ms delay won't matter. I guess his previous experience was with shady CFDs, not with actual futures.
appears cboe runs from NY5 Equinix data center in Secaucus, New Jersey https://cdn.cboe.com/resources/membership/US_Equities_Options_Connectivity_Manual.pdf and why would risk checks be done at the exchange data center? risk needs to be checked against something, and that something is probably located in a database at the broker's datacenter
If you are manually trading, then don't bother. The time you take to click your mouse to send an order is way more than the time any broker will take to send your order to the exchange. You may have a 0.1 sec difference between the slowest and faster broker. Your slippage is coming from you (if trading manually), not from your broker. And you didn't specify what type of slippage you are experiencing and in which market condition.