Virtual Private Servers in trading

WHAT IS A VPS?

So…you have probably heard this acronym VPS before. And now, as your research about trading is getting more and more in-depth, you are hearing it more often and you have that feeling that this is something that is very important in trading. Well, you are totally right! And now you are asking yourself: why am I finding this out only now? what have I been doing since now? Well, that is a legit question but don’t worry! if you realized it, it means that you are on the right way.

Let’s get now to explain what is a VPS so everybody can understand. A VPS stands for Virtual Private Server and it is a computer or part of a computer/server that is usually placed in a specialized data center and the user can access it from anywhere in the world via an internet connection.

When you get a whole computer/server for yourself (like a personal computer that most have at home) you actually get a Dedicated Server. This is a stand-alone computer and it is different than a VPS in many aspects. A VPS is, more exactly, a Virtual Machine that runs on a Server. Therefore, there are several VPS within a Server that can be active at the same time and used by different users from around the world.

PHYSICAL INFRASTRUCTURE

The VPS user can use a server located at thousands of kilometers away. As a Server can host several VPSs, depending on the performance specifications of the server and of the VPSs, people from different locations of the world can use the resources of that server at the same time.

So, in the end, the user will basically work on the Server in the UK, while he is using his personal computer in Spain just to “see” inside the UK Server. Regarding the physical infrastructure of this system, the only thing left is the actual connection which, most of the times is made through the internet.

SOFTWARE NEEDED

Obviously, the “magic” works due to some software programmes that are assuring the high performance of this service as well as the safety and transparency.

On the VPS Provider’s side, a software that is able to split the resources of a Server into multiple Virtual Machines (VPSs) is used. This software is also responsible for managing the service while it is in use. On the user’s side, the most popular software is Remote Desktop Connection, which enables someone to work on a remote computer from anywhere in the world. One very important advantage here is that RDP can be used by any kind of mobile device so you can access your VPS on the go, within seconds.