What is Real-Time Market Data & How to Use It

Real-time market data meaning

The term "real-time market data" refers to the insightful stock market data created from every transaction on Stock Market Exchanges. In a sense, real-time market data such as the latest bid & ask, last trade, volume, and overall order flow is a by product of a stock exchange's business of facilitating stock trades between active buyers and sellers. The exchanges then monetize this data by partnering with certain data providers who package the data up and deliver it to end-users.

Real-time data provides specific information that can help you make better-informed business choices before placing a trade and making other important decisions. This type of data collection is unbelievably valuable and can be used by any industry for a multitude of purposes. Essentially, businesses of all sizes and users around the world rely on real-time analytics because it gives them the opportunity to react and deal with situations right away, leads to successful business growth, and reduces operational costs.  

What is the difference between real-time and 15 minute delayed stock quotes?

The difference between real-time stock quotes and delayed stock quotes is that real-time quotes show current prices and volume information for a stock that is trading on the exchange, while delayed quotes take approximately 15 minutes to generate that specific type of stock market information. There are businesses and users who may prefer working with delayed market data, however, if you are involved in high frequency trading, real-time data is the better option.  

A 15 minute delay may not sound that bad, but a lot can occur in that brief period of time. Speed and time can make a world of a difference, which is why having access to real-time market data for your business is necessary. Just look at Goldman Sachs, who recently spent $100 million “to shave milliseconds off stock trades”, because they believe that real-time data “can be used to solve lots of different problems.” If you are content with making business decisions based off delayed, possibly inaccurate data, then keep in mind your tech-savvy competitors will always be a few steps ahead of you.  

Cons of delayed stock quotes

• Receiving delayed financial information
• Prone to unforeseen price fluctuations
• Susceptible to missed opportunities
• Possible heavy business losses

What type of information is included in a typical real-time quote (RTQ)?

• Stock symbol
• Latest stock price
• Trading volume
• 52-week highs and lows
• Bid and ask price
• Underlying stock exchange

What are the top seven business benefits of real-time data analytics?

• Access to valuable market data without delay
• Address operational problems and malfunctions promptly
• Monitor organization’s infrastructure quickly
• Make better, faster business decisions
• Reduce functional costs across departments
• Prepare achievable forecasts and projections
• Keep track of employees and departments efficiently
• Improve overall customer service experience

It is perfectly clear that having access to real-time data creates several opportunities and is a must have for your business. At the end of the day, having this type of financial information is important because it leads to business growth, lower operational costs, and smarter business-related decisions.  

Where can you get access to real-time data?

Access to accurate real-time data is a competitive advantage that every business and investor should be taking advantage of. If you are looking for real-time data, reach out to one of our data experts today to explore our affordable data packages. We are a leading data provider that offers sophisticated tools, financial data, and premium customer support. Learn more about the ways you can access our market data at intrinio.com.

‍