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DVA-C02 · Question #193

A company is building an application for stock trading. The application needs sub-millisecond latency for processing trade requests. The company uses Amazon DynamoDB to store all the trading data…

The correct answer is D. Use DynamoDB Accelerator (DAX) to cache the trading data. DAX (DynamoDB Accelerator) is an in-memory caching layer purpose-built for DynamoDB that delivers microsecond read latency - exactly what sub-millisecond stock trading requires - and requires minimal code changes (just point your SDK client at the DAX cluster instead of…

Submitted by obi.ng· Mar 5, 2026Troubleshooting and Optimization

Question

A company is building an application for stock trading. The application needs sub-millisecond latency for processing trade requests. The company uses Amazon DynamoDB to store all the trading data that is used to process each trading request. A development team performs load testing on the application and finds that the data retrieval time is higher than expected. The development team needs a solution that reduces the data retrieval time with the least possible effort. Which solution meets these requirements?

Options

  • AAdd local secondary indexes (LSIs) for the trading data.
  • BStore the trading data in Amazon S3, and use S3 Transfer Acceleration.
  • CAdd retries with exponential backoff for DynamoDB queries.
  • DUse DynamoDB Accelerator (DAX) to cache the trading data.

How the community answered

(17 responses)
  • A
    6% (1)
  • C
    12% (2)
  • D
    82% (14)

Explanation

DAX (DynamoDB Accelerator) is an in-memory caching layer purpose-built for DynamoDB that delivers microsecond read latency - exactly what sub-millisecond stock trading requires - and requires minimal code changes (just point your SDK client at the DAX cluster instead of DynamoDB directly).

Why the distractors fail:

  • A (LSIs): Local Secondary Indexes improve query flexibility and can help with specific access patterns, but they don't cache data in memory or fundamentally reduce retrieval latency to sub-millisecond levels.
  • B (S3 + Transfer Acceleration): S3 is object storage optimized for large files, not low-latency transactional data access; Transfer Acceleration reduces upload/download time over long distances but is completely wrong for this use case.
  • C (Exponential backoff): Retries with backoff are a resilience pattern for handling throttling errors - they actually increase total latency on failure and do nothing to improve normal retrieval speed.

Memory tip: Think DAX = DynamoDB's turbo button - it sits in front of DynamoDB like a cache, turns milliseconds into microseconds, and is a drop-in solution (least effort). Whenever an exam question pairs DynamoDB with "sub-millisecond," "caching," or "reduce read latency," DAX is almost always the answer.

Topics

#DynamoDB#DAX#Caching#Performance Optimization

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