Market data definition

Pros and cons of market data

Pros of market data

Market data is generated in real time, which means that it can be used to make quick but informed trading decisions. However, market data can also be used to access historical prices – these historical charts are a crucial part of technical analysis, and can be useful when creating a strategy for future trades.

Market data is normally found in one place under a ticker symbol, which makes it easy to access. Commonly, market pricing data is kept separate from all other information, but some market data providers will choose to deliver fundamentals as well. In equities, this can include market valuations, company performance reports and reference data.

Cons of market data

The real-time delivery of market data is important, as prices can move quickly and traders need to make timely, informed decisions about opening and closing their positions. However, with data there is always the risk of latency or lags in the delivery of information, especially as the information can be coming from trading venues all over the world. When choosing your data provider, it is important to ensure that they are reliable, and have the capabilities to give you high speed access to accurate market data.