The Art of Mastering Marketplaces

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What is Market Data?

The market data is price and trade related data for a financial instrument. This data is reported by a trading venue such as stock exchange. Traders and the investors are able to know about the latest prices through this data. The latest market trends and the historical trends for the instruments is among the thing they are able to see. Equities, fixed income products and currencies are the examples of the instruments. Other ways are there to explain other ways. It refers to the electronic streaming of prices, volumes as well as the related information used.

The trading venues are sources of the majority of market data. Issues are the sources of the reference data which is collected by the market data vendors. A foundation for performing various transactions for trader and vendors is provided by the market data. It is through this means that the management of the financial assets becomes possible. Among the information included in the market data is that which is gathered and distributed through the various key indexes.

Market data is usually reported on various assets. It is also reported on other financial instruments by the trading companies and exchanges. Through this data the traders can tell the worth of various assets. On how to make profits good strategies can therefore be laid. Real-time market data’s delivery is very important. Decisions which are timely as well as informed can be made by the traders. The historical information availed is key in the planning of future trades.

Market data for a particular instrument includes different things. It includes the identifier of the instrument and where it was traded. Included in the identifier are the ticker symbol and the exchange codes. The data includes information such as the volume traded, bid and offer sizes and the static data. Specialization in collection cleaning, collating and distributing market data is done by some people. These are called the financial data vendors. The most common way in which vendors access data is this way

Market data is classified in two main categories. The category one provides the investors with basic information trading. The lowest ask and highest bid prices is included in the information. The best bid offer data is provided in the information which is required. The most attractive security in the market’s information is offered by other category. Keeping track of moving securities information to the investors is provided. Information on trading systems and the volume based trading platforms is also provided.

Information of market data is used in the real time. On-the-spot decisions about buying and selling are made. To project pricing trends the information is also used in the historical manner. Calculation of the market risk on the portfolio used the historical information that is provided. These investments may either be held by individuals or by institutional investors.

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