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January 03, 2020

The Importance of Real-time Data in Stock Trading



Staying up-to-date on the market is essential for every investor, and today's tools make it easier than ever. Online brokerages make use of a real-time data feed so clients can make their decisions with up-to-date information. We'll explain why you should start using real-time data to improve your own investment experience.



Real-Time Data

You may have heard of real-time data when studying online stock trading for beginners, but what is it really? When a system delivers data at near-instantaneous speed or has a minute delay, that is real-time speed. Analyzing your stock-trading figures at the day's end is no longer a feasible process. Market circumstances can shift in a snap, and if you're making decisions with data that is even minutes old, you'll find yourself executing poor decisions. Real-time data allows you to move with the market instead of playing catch up.

Beat the Competition

Big data is now mainstream in market trading. It's progressing faster than ever before. If you want to remain ahead of the curve and stay competitive in your market, you need to work with data delivered in real-time. This enables you to extricate yourself from your competition and stay a few steps ahead of the market.

Trade Volume

Real-time data are stock volumes traded during the day and not curtailed by stock prices. The real-time volume can also show the players who are keen on buying or selling a specific security. Volume data is counted on by technical traders. It indicates how seriously they should scrutinize a stock's price upward movement. If that growth is followed by larger volumes, it can be reasoned that the price will continue to climb higher as those volumes push the stock's price.

Fluctuating Market 

Market values will fluctuate on a dime. These evolving values can impact your analysis of a stock, so it's imperative that you're taking advantage of the most updated information. When utilizing a streaming analytics software, you'll always have the most current data from all the important information sources. This will paint a full picture of your portfolio performance.

Gains and Loss

Real-time data is delivered as a feed to trading applications to illustrate the value of a trader's existing stock positions. Using real-time data, you can see the potential gain or loss you might incur at that moment. The profit and loss will recalibrate with each notch in a stock's price. This data is crucial to a trader who needs to cut their losses by selling out or to one is desperate to reacquire a stock that was previously sold short.

Analytics is becoming a cutting edge industry due to the sheer momentum of data flowing through the market every day. This and the reasons we've listed, mean it's imperative that you adopt streaming analytics into your real-time analysis. Having access to accurate real-time quotes is key as the smallest time disparity between a quote and the real-time situation can reverse a profit into loss.



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