Keep Your Trading Business Safe with a UPS Battery Backup
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Keep Your Trading Business Safe with a UPS Battery Backup

Key takeaways

  • A UPS is not there to let you keep working through an outage. It is there to give you enough time to close a position and shut down properly.
  • Standby is the common type and covers most traders: it acts as a surge protector normally, and switches to battery when the power drops.
  • Continuous (online) units run everything from the battery all the time while the battery charges from the wall. They cost more and suit machines sensitive to fluctuation.
  • Count your outlets before you buy. Some ports on a unit give surge protection only, without battery backup — the labeling on the top of the unit tells you which is which.
  • Back up the modem and router as well as the computer. A powered machine with a dead router cannot close a trade.
  • Size it by adding up the power draw of everything on backup, then add about 20% headroom. Capacity is quoted in VA, which is a rough guide rather than watts.
  • Expect 15 minutes to an hour of runtime depending on size. Longer runtime costs more, so weigh it against how often your power actually fails.
  • Not every monitor needs backup. Your computer, one or two screens, and the network gear are usually enough to exit cleanly.
  • Not sure where your machine stands? The free benchmark test takes about two minutes.
Imagine you're working in your office, and you are about to make the trade of your life. Suddenly, the power goes off and your computer shuts down. It’s a nightmare situation. Fortunately, this situation can be avoided by installing an Uninterruptible Power Supply (UPS). However, many traders neglect to set up this basic safeguard.

What is a UPS Battery Backup?

A UPS is a device that supplies a backup battery to your computer. It provides consistent power when the power goes out or voltage levels drop. While it’s not designed to let you continue your work day, it does give you enough time to save your work or complete a trade in progress. After that, you should shut down your trading computer until the power comes back on. The length of time you’ll have to shut down your computer smoothly depends on the size of the UPS.

Types of UPS

UPS functionalities can differ from manufacturer to manufacturer. However, the general types are as follows:

Standby UPS

Standby UPS’s are the most commonly used type. The to-be-protected devices are plugged into the UPS outlets, and the UPS is connected to the wall outlet. During normal conditions, the UPS works like a surge protector. When there is a power outage, the power from the DC battery is converted to AC current to serve the connected devices.

Continuous UPS

Continuous UPS’s are built for more sophisticated operations. The unit is always online. The devices connected to the unit draw power from the battery, while the battery gets charged from the power outlet. Continuous UPS’s are used for computers more sensitive to power fluctuations or running critical software. For example, if you are running a trading computer that is crunching market data continuously, you might want to use a Continuous UPS. This type of UPS is more expensive.

Things to Consider When Choosing a UPS

Here are some of the considerations for finding the right UPS.

Number of Outlets

Consider how many devices you are going to connect to the UPS. Make sure you have enough outlets to accommodate your needs. Remember, the number of devices can increase as you buy new computers or add monitors. Also, look at the specifications to determine how many ports have both surge protection and backup battery connections. Usually, some of the outlet ports will offer surge protection only. Decide how many of your devices will need battery backup. In addition to your computer, you may decide you only need power for one or two of your monitors in order to shut down smoothly. You’ll also want to have backup for your modem and router. Generally, the unit will clearly show on the top which outlets have both battery backup and surge protection.

What Size Battery Backup

Wondering what size battery backup you need? To find the optimal UPS size for your needs, figure out the power requirements for all the devices to be on backup. The UPS should be able to handle the total sum. Ideally, you want the UPS to have more capability than your devices require. UPS power capacity is generally given in units of VA (Volt-Amp). VA is not wattage, but you can use it as a rough estimate. As a rule of thumb, get a UPS that offers 20% more power than the total VA rating needed for your devices.

UPS for Computer Backup Time

The purpose of a UPS is to allow you to complete your current task and shut down your devices smoothly without losing work. You shouldn’t expect to continue working using the UPS as your power source. Depending on the size and your needs, a UPS can provide power for 15 minutes to an hour. Of course, the larger the UPS battery, the more expensive it will be. Consider the trade-offs between backup time and cost (and how often your power goes out) when making your purchasing decision. UPS manufacturer APC offers a UPS Selector tool to help you figure out which units will work for you, given your equipment’s power needs and the length of time you want to run on battery.

Conclusion

For any trader, a UPS is a must-have. Without one, at the very least, you are risking damage to your expensive trading computer equipment. But if you are unable to complete a trade, the potential loss could be much greater. Reliable UPS’s are available from brands like CyberPower, APC, and Tripp Lite. If you don’t have one, get yourself a UPS today and keep your trading business safe. Take a minute or two to see what CyberPower battery backups we have available here. There are more trading computer tips like this in our EZ Trading Computers buyer's guide. Check out our "How To Buy a Trading Computer" e-book. Remember, we are here to help with all your technology-related questions. If you think of additional questions about computer hardware or other questions, give me a call. My team and I are here to help. We're happy to answer any of your questions about trading computers via phone: 800-387-5250.

Frequently Asked Questions

Do traders really need a UPS?

Yes, and it is one of the cheapest pieces of protection available. Without one, a flicker in the power reboots your machine with positions open and no way to act until it comes back. Beyond the trading risk, sudden loss of power is hard on the hardware itself. The cost of the unit is small against a single position you could not close.

What size UPS do I need for a trading computer?

Add up the power requirement of everything you want on battery — the computer, the monitors you need to see, the modem and the router — and pick a unit rated about 20% above that total. Capacity is given in VA rather than watts, so treat it as an estimate and err on the larger side.

How long will a UPS keep my trading computer running?

Somewhere between 15 minutes and an hour, depending on the size of the unit and how much you have plugged into it. That is deliberately not a full working session. The purpose is to give you a controlled few minutes to close what is open and shut down, not to trade through a blackout.

What is the difference between a standby and a continuous UPS?

A standby unit acts as a surge protector under normal conditions and switches over to its battery when it detects a problem. A continuous, or online, unit powers your equipment from the battery permanently while the battery charges from the wall, so there is no switchover at all. Continuous units cost more and suit equipment that is sensitive to fluctuation.

Should my monitors be plugged into the UPS too?

At least one, so you can see what you are doing while you close out. There is no need to back up all six screens — that would demand a much larger unit for no benefit. Prioritize the computer, one or two monitors, and your modem and router, and put the rest on the surge-only outlets.

Eddie Z
Eddie Z
Founder, EZ Trading Computers & EZBreakouts
Eddie Z is a full-time day trader who has spent 39 years on Wall Street, starting on the floor of the NYMEX in 1987. Since 2010 he has built more than 20,000 computers for traders — only for traders. Almost everyone else in this business came from the technology side and later discovered traders. Eddie came the other way round, and still has his own money on the line at 9:30 every morning.

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