Quote from rsi80:
What benefits does a large cache (L2 or Intel Smart Cache) provide in a trading context?
Thanks.
L1 is SRAM/L2 is DRAM
Caches are on the same die (physically) as the processor, to put it simply: they are insta-memory on hand - there is no intermediary between the CPU and the cache (traditional memory has to go through buses). It goes without saying that 'the bigger the better'
The cache is a pre-fetch area, it improves all software speed, it's not the same as a 20% increase though - to give a simply analogy:
In an office you are the CPU and you're signing papers (executing instructions). Your filing assistant is your memory - you can have a
potentially better/faster assistant by paying more (so she walks faster). Your cache is your desk space, you will normally always sign papers that you can reach by hand, and your assistant takes the signed papers and stores them away and brings new papers. Remember that your CPU is rarely at 100% (not even during trading). If your desk always has paper nearby, then what matters is how fast you work, and it matters less that your assistant isn't running
With a bigger cache, it provides a gap before it makes a difference, I hope I've explained it thoroughly
L1 SRAM is faster than L2 DRAM is faster than L3 (shared cache) is faster than DDR