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In terms of network latency this can be defined by the time it takes for a request to travel from the sender to the receiver and for the receiver to process that request. In other words, the round trip time from the browser to the server.
Latency is the delay from input into a system to desired outcome; the term is understood slightly differently in various contexts and latency issues also vary from one system to another. Latency greatly affects how usable and enjoyable electronic and mechanical devices as well as communications are.