Do you know the number#1 secret to success of professional traders? Strategies?Systems? Well, for any of these to become truly powerful, it is need to be backed by accurate, real time data!
Accurate, real time data is the back bone of any system. Be it weather forecast, trading or any other- without accurate, real time data, you can’t expect desired outcomes.
Real-time systems feed accurate data to the relevant customers instantly or within a fraction of a second from the actual occurrence of the event. It helps the customers to analyze the changes and make decisions. In the stock market, the online data feeders display the stock quotes and their respective changes with time. The time of delay is minimal in these online MCX or NSE live data feeds. It assists the traders in making the correct decisions in the ongoing market.
How trading can be improved with accurate real-time data in the stock market?
Accuracy is essential in the data of all the fields. It is even more so when the data involves the risk of a massive amount of money exchange between the parties. The real-time data is said to be accurate when the values on the data chart of a trader match precisely with the actual data in the exchanges like NSE or MCX. For example, if the HDFC bank’s first trade has executed Rs. 1500 at 9: 15: 04 am, then the same value should be displayed on your screen corresponding to the HDFC bank at the same time. Logically it will take at least a few milliseconds to reach the data to your feed. But the target is to minimize it as much as possible. A real-time data feed will also show you the exact number of trades that have taken place in a given amount of time. This real-time data for NSE, or MCX will indicate the pressure of the stock in the market. If the data is not accurate, then it will severely mismatch your indicators, averages, and the trading system. Also, the delay time is not the only factor that one should be concerned about. The frequency of updates is another thing that should be kept in mind.
There are different platforms where you can check the live data feed of the stock market. AmiBroker is a leading example in this sector. They provide universal technical analysis software which can work for any stocks, Futures, Indices, etc of any stock exchange.But Amibroker does not come packaged with data. The user has to purchase the data separately from suitable vendors. This is where Global Financial Data Feeds come into picture. The users can avail AmiBroker data feed India from Global Financial Data Feeds. Our accurate data gives you an edge because low latency, real-time MCX, NSE live data feed for AmiBroker.
Real-time data levels for the stock market
There are four different levels of real-time data in NSE and MCX. These levels are laid back depending upon the market depth of the stocks in the exchanges. These data are vital for the day traders, i.e., who deals with daily buying and selling of the shares. The importance of the same is a little less for long-time investors as the live prices and quotes are of little significance to them. These four levels are termed as-
- Level 1
- Level 2
- Level 3 and
- Tick by Tick or TBT
What is Market Depth?
Every market has a limit to the number of market orders of security while keeping the price intact. This ability to maintain the security price constant within the range of the broad market order is termed as the Market depth. In simple terms, you can think of it as a list of the sell and the buy orders, but in an electronic format. The organization of the list depends primarily on the price levels of the stocks. It keeps updating the real-time activity in the stock market to assist the traders. All the trading platforms have some market depth displayer in one form or another. The buy and the sell orders that are still to be executed in the exchange are displayed on those platforms. The list also includes the best bids, the asking prices of the stocks, offers, and sizes of all the relative proposals. If the market for a particular stock is “deep,” then it means that there is ample scope for pending orders. The sufficient volume of pending orders on both the asking and the bid price blocks a significantly high order from changing the cost of the security.
Level 1 real-time data for NSE and MCX
As the name suggests, the level 1 live data feed gives information of the first level in the book of order. Their features include best bid size, best price, best ask price, and so on. It depends on the type of exchange. Let’s go over the information that the traders may avail from a level 1 or L1 datasheet:
Bid price: It is the highest bid that a particular potential buyer has offered for the stock. That is the amount he is willing to pay for the same currently. But it can change, of course. The highest bid gives the other traders an amount to target in their proposal.
Best bid size: It indicates the number of contracts or the shares that are present against the previously mentioned bid prize.
Ask price: It is an indication of the seller’s intentions. In simple terms, the asking price is the lowest price at which the seller will be willing to sell the security. But of course, the final selling price will be different due to the bidding war.
Best ask size: It is almost similar to the best bid size. The best ask size is the amount of contract or the number of shares that is present against the asking price of the stock.
Last traded price: It gives a reference to past trading activities. The last sold price tells the amount for which the previous trade took place.
Traded quantity: Similar to the best bid size and the best ask size, the amount traded is the number of contracts and the shares that were exchanged during the last trade.
The level 1 real-time data is entirely sufficient for those who deals in complex indicators, Delta Divergence, index-based strategies, etc. The Global Financial Datafeeds LLP gives level 1 NSE data feed for AmiBroker. They are also the MCX data provider for AmiBroker in Indian stock exchanges. This AmiBroker data feed level is particularly useful for those who are not concerned by the depth of market trading.