Who Needs Real-time Data and Delayed Data?

 

Fields of all kinds require the use of data. Many would be correct to define data as the biggest asset there is in business and having it in whatever form is key to having a chance at success. Nowhere is this more the case than in the world of trade, where brokers and interested individuals and funds are looking to make a profit. In the trading space, two types of data are primarily used and these are the real-time for strategies and delayed varieties, which are both useful in their ways.

 

So, how does one exactly describe these two types of data, and what makes them distinct from one another? The following is a deep dive into the two forms of data which will include a look at where they're best applicable and what comes with their use.

 

Contents:

- Defining real-time and delayed data

- Main difference

- Who’s using this data

- What to expect when using either data type

- Final thoughts

Defining real-time and delayed data

Whether it’s digital currency or the stock market, data is always a priority, and having it in as many ways as possible is a great advantage and the above two provide just that. When data is analyzed and delivered in real-time, the information gets to its intended target as soon as the related change occurs.

 

As it pertains to the field of trade, this is often one feature among many that are offered by platforms, and the lightning-quick and volatile nature of the market demands its use. The fast-paced world goes beyond the trading sphere, as you would imagine, which means that other areas use it and these are as follows:

- Retail

- Manufacturing

- Healthcare

- Telecommunications

- Energy

Main difference

Delayed data is essentially the same thing only, with the only difference being that the very same information is delivered a considerable amount of time after it’s put out. The time that elapses before the data arrives can be up to 20 minutes, during which time a lot could have happened. Though these definitions pretty much give up the fact that real-time data is preferable, we’ll see later on that, either way, is still valid.

 

Either data type in the field of trade is usually presented in the form of stock quotes. When an exchange, for example, releases data, they’ll partner up with data providers who then send out the monetized information. These quotes irrespective of how they’re delivered contain the following information:

- Immediate stock price

- Bid and ask prices

- General feel of the exchange

- Highs and lows over 52 weeks

Who’s using this data?

Now that you have a clear definition of both data types, we can properly delve into which kind of trader is using either type. With real-time data, you get many benefits. As the idea is to receive data as quickly as possible to take part in the volatile market in which change is swift and frequent, you can quickly build your profitable strategy. This perfectly describes traders who are looking at things with eyes fixed on short-term rewards and this precisely goes to day traders and brokers.

 

With delayed data, things are a lot more different as any form of high-frequency trader wouldn’t use data delivered in this way, since multiple opportunities come and go within that period. That said:

- It’s still useful as the same information can be used in a historical context to best determine what the future could hold

- As such, it’s worth using when applied to long-term investing, where nothing is expected to come out immediately

 

In fundamental trading, there’s no need for real-time data because they view their investments as long-term deals. You can afford delays for the most part.

 

What to expect when using either data type

It’s quite clear that in 2023, real-time data is far more desirable than its counterpart, which makes sense because it allows users to tend to issues before they develop. In addition to this, keeping track of things as they occur helps with making accurate predictions when placed against historical data. This manner of operation is quite diverse and applies to the host of fields listed above. That said, this type of data is highly sought after, which means that it can be quite expensive, although affordable options can be found.

 

In the case of delayed data, it’s fair to say that it comes with quite a bit of auxiliary information to digest. For starters:

- It's generally cheaper than its counterpart, but this does come with a few drawbacks

- The most obvious is that it just isn’t built for the ever-moving 2023

- This is only compounded by the ever-present risk of slippage

 

The risk of slippage only heightens when delayed data is used. Ultimately, the seemingly affordable price is misleading as the lost time leads to lost opportunities to leave a situation unscathed by selling at the right time or buying stock that could be highly profitable.

Final thoughts

With the world’s increasing reliance on digital tools in all fields, it should come as no surprise that data is as important as it is. As useful as both data types are, more is generally gained from getting the information in real-time and as more developers enter the space, access to said data will only get more affordable.

 

This, however, doesn't mean that there isn’t a place for delayed data, for this piece has clearly shown the opposite. The key to knowing who needs either data type depends almost entirely on what’s needed at a specific moment. However, just to be safe, it's best to have real-time data at all times by cooperating with reliable platforms!

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