5 Advantages of Real-time Market Data Usage

 

The constant changes and overall versatility of markets make it difficult to navigate in real-time. This can be the case, but there are ways of combating or avoiding these difficulties. 

 

The best way to do this is to ensure that users have access to all available data in real-time. When it comes to real-market data, most financial experts will tell you how beneficial they are and have no problem recommending their use. Let’s see what is real-time market data and delayed data and which one should your business focus on? We’ll also check the main advantages of applying real-time data.

 

Contents:

Real-time Market Data: Basic Guide

Accessing Real-time Market Data

A Few Advantages of Real-time Market Data

#1. Speed

#2. A Streamlined Workflow

#3. Data Analysis

#4. Service Quality Increase

#5. Reduced Costs

Final Thoughts

 

Real-time Market Data: Basic Guide

It is safe to say that the stock market as we know it has undergone countless years of evolution and technological advancement. Where once brokers and third parties were a necessity in order to monitor the market, technology has gradually phased them out. The creation of the internet, computers and mobile devices gave clients a first-person view of the stock market as it plays out.

 

Real-time market data refers to information concerning the stock market that is instantly available to all interested parties as it happens. The need for instant data has led to the creation of e-markets and automated execution orders among other innovations. Said innovations will lead to a growing global economy and even more data that needs to be analyzed.

 

Anyone in possession of this data has the ultimate advantage. If used properly, traders and brokerages can make decisions that will positively impact their ventures. This data is coming at a rapid rate, though, it has to be properly processed and interpreted. In short, the interpretation of your data can greatly affect the outcomes.

 

Accessing Real-time Market Data

Real-time data can be hard to attain and while modern technology makes it easier to apply it, the financial platforms and trading websites may provide delayed information. The reason is obvious, valuable data is expensive. Of course, websites that provide free services or offer inexpensive subscriptions will delay information starting from 2 to 15 minutes. They can even come at the cost of the delay which can last over 15 minutes. Any delay in the financial world could cost you dearly and should be avoided.

 

There are reliable data providers and trading platforms whose job is to make accurate, real-time market data accessible. However, they can be expensive because of the licensing fees and an additional payment after the data has been distributed. This price can go up if you have multiple providers, but the benefits that come with that price are worth it.

 

A Few Advantages of Real-time Market Data

Whether you are an individual or a large corporation, one can agree that real-time market data is invaluable in the fast-paced financial world. The following are just a few of the benefits that come with having real-time market data.

 

#1. Speed

This is the most apparent benefit that comes with using real-time market data. This is because of the constantly changing market that can throw a wrench into your plans. Knowing about said changes 20 minutes after they have occurred is just as bad as learning about them a day later.

If you learn about events as they happen, it is easier to sort them out without affecting your bottom line. The speed of real-time market data also helps you get ahead of the curve and in a way, predict how the market will play out.

 

#2. A Streamlined Workflow

Real-time market data usage also helps with the overall workflow outside of giving you more time to respond to drastic changes. Risk assessment management is but one example that can be given.

 

Using real-time market data will not only increase accuracy and limit risks, but it will also improve general efficiency. This is because not too much time is spent waiting for market data.

 

#3. Data Analysis

The financial world is extremely competitive and every party is trying to outdo their rivals by acquiring an edge through data analysis. Once the data is analyzed, it can cause a ripple effect that leads to decisions that can take an organization to the next level.

 

Sure thing, it is hard to analyze a large amount of data and it can be crippling. That is why analyzing the data (as it’s happening in real-time) gives a lot more breathing room.

 

#4. Service Quality Increase

This harkens back to the idea of real-time market data positively affecting the workflow within a company, only this time, focussing on the customer. The quality of service to customers will be felt, especially when it comes to speed.

 

#5. Reduced Costs

This sounds counter-intuitive considering how expensive real-time market data could be. However, the overall impact has meant that in the long run, it is cheaper to use real-time market data as opposed to waiting or counting on luck. This is because of its likely positive impact on the bottom line.

 

Final Thoughts

It should now be a bit obvious that real-time market data can be advantageous to anyone with access to it. Accurate real-time market data should be sought after and the same can be said about searching for reasonable prices that meet your budget. Despite knowing that the expense is worth it, you will see the results in the long run as time goes on.

 

There should also be a desire for greater flexibility concerning how the data is used. The easier the data is to interpret, the faster the response to it. This in turn may influence better decision making. Many quality platforms offer great services to ease the processes, but the choice is yours.

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