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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 time it takes for your computer to communicate with the World of Warcraft server. A latency of 50ms means that it takes 50 milliseconds to send and receive a packet from the World of Warcraft server. For playing games online, a low latency is desired as it means less communication time between control input and events happening on the player's screen.