We mentioned what market data is, significant market data providers, and important features you need to know about market data in detail in today's blog post.

 

Table of Contents

Market Data 

What is market data?

Where have you heard about market data? 

What you need to know about the market date.

Understanding Market Data in The Financial Press

Market Data Delivery

Market Data Delivery

Forex Market Data

Find Out More About Market Data.

Conclusion

 

What is market data?

Want to know what market data mean? Let's put it this way in a nutshell, market data is data published by a trading place such as the stock market to inform traders and investors about the latest prices of financial instruments such as shares, derivatives, commodities, and currencies.

Market price data is used in real-time to make instant trading decisions. It sheds light on the question of whether I should buy it or not. Historical market data can also be used effectively to evaluate trends and calculate market risk on investment portfolios.

 

Where have you heard about market data?

Market data is an important element of financial news coverage. You may have come across them on news sites such as the BBC or Reuters that offer up-to-date market data. You may have also seen it on the pages of detailed market data on the back of financial papers. Almost everyone has apps these days that chart market data by hour, day, week, and year.

 

What you need to know about the market date.

Market data let you see both the current prices of investment products and identify historical trends. Stock market data usually includes the following information;

• Stock symbol for a product - a pattern of characters representing a particular security listed on an exchange. Apple is AAPL, for example; Wells Fargo is WFC, and GlaxoSmithKline is GSK.
• The last bid price - the price at which a dealer is ready to buy securities or other assets.
• Most recent sale price - the lowest price a stock seller is willing to accept for a share of that stock.
• The time of the last bid and trade, and the price and size of the last sale.
•  

Understanding Market Data in The Financial Press

If you look at stock prices in a financial newspaper, you'll likely come across columns that show 2-week highs and lows, the highest and lowest prices the stock has traded in the past year. This makes you understand how the current price compares to the ups and downs of recent months. Other information to include in a newspaper's stock quote is the dividend and dividend yield per share—that is, the percentage of dividend yield. There will also be a column for the price/earnings ratio. Another column will record the trading volume.

Finally, you'll come across the day's high, the day's low, the closing price, and the net change. When a closing price is up or down more than 5% at the previous day's close, the listing for that stock is in bold for easy identification.

 

Market Data Delivery

The transmission of price data from exchanges to users is extremely time-sensitive. In addition, special technologies are used to distribute information to traders and investors. The speed of delivery of market data can be critical in trading systems such as high-frequency trading, where computers enter and exit positions within seconds or fractions of a second.

Market data vendors offer a wide variety of different delivery frequencies. The data value can be enhanced by adding services such as listing information, data sharing, time series, and historical data.

Static or reference data is any data about securities that do not change in real-time. Examples of reference data contain identifying codes such as the ISIN exchange on which the security is traded, end-of-day pricing, name, and address of the issuing company, terms of the security.

 

Level I And Level II Market Data

Market data is often divided into two types, called Tier I and Tier II market data. Level II gives more information than Level I. Traders decide which data stream they need for their trading and then subscribe to that data stream through their agents. Depending on the broker, Level I and Level II may have different costs associated with them.

Level I market data has all the information needed to trade in most chart-based trading systems. Level II provides more details – it not only shows the highest bid and bid but also offers at other prices.

 

 

Forex Market Data

Foreign exchange market data can be obtained from a wide variety of sources. Major forex market data providers include Reuters, Bloomberg, The Wall Street Journal, and MarketWatch.com. Then there are financial TV networks like Bloomberg TV, CNBC, and CNN. Another option for the delivery of real-time market data comes from forex trading platforms. Many forex brokers include live news feeds directly into their software to give users easy and immediate access to events and news in the currency markets.

 

Find Out More About Market Data.

If you want to further explore the presentation of market data, carefully look up detailed definitions of many related terms such as stock, swap, asset class, bid price, and ask price in comprehensive online dictionaries. These will be very helpful to deepen your understanding of the markets.

In conclusion, we have provided you with useful information on topics such as what is market data and what you need to know about market data in today’s blog. We hope that this blog post will be beneficial for you. We will continue to create useful works in order to get inspired by everyone. We are sure that we will achieve splendid things altogether. Keep on following Finage for the best and more. 

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