DEFINITION of market data
Market data is live streaming of trade-related information. It is a compilation of information such as price, bid/ask quotes and market volume.
WHAT IT IS IN ESSENCE
Trading venues give reports on various assets and financial instruments, and then they are distributed to traders and firms. Information is available across thousands of global markets, including stocks, indices, forex, and commodities.
This is a key element of financial news coverage.
You may have seen it on news websites, who offer up-to-date market data information.
And, if you’ve looked at them, for example, you’ll have noticed the pages of detailed market data at the back of financial newspapers.
These days, many smartphone users have apps charting this kind of news by the hour, day, week and year.
This is a broad term for trade-related data such as price, ask/bid and volume for financial instruments.
Financial firms, traders and investors require such data to execute trades.
Financial data vendors offer this information on a regional or global basis that may include a large number of exchanges and instruments such as equities, fixed-income products, derivatives, and currencies. The following are common market data considerations.
HOW TO USE
Market data is used by traders to assess the worth of various assets and will inform their approach to entering and exiting trades.
The purpose of using this is to get as much information about the asset you are planning to trade.
It is easier to calculate market risk and the impact of live news releases using market data.
Market data is useful to trade financial instruments in a time-sensitive and competitive environment. Its providers may locate servers in close proximity to exchanges and use high-speed networks to provide customers with timely data.
This services may operate on a global basis with access to a large number of trading venues.
And may also offer other types of data such as corporate actions and events.