What Is Real Time?
Let me explain to you what real time means in this context. Real time is when a system delivers information to you at a speed that's near-instantaneous or with just a short delay from the actual event. For instance, online brokerages often give you a real-time data feed showing stock quotes and their changes with barely any lag, so you can make investing decisions based on the latest info.
Key Takeaways
- Real time means information relayed as it happens or with a short delay.
- In financial markets, it refers to security prices where accuracy is vital for participants.
- Many networks, sites, and apps offer delayed quotes from 15 or 20 minutes ago.
- Delayed quotes work for casual investors not timing the market.
- Some brokerages and paid services provide real-time, up-to-the-minute quotes.
Understanding Real Time
You should know that while many financial websites offer free stock quotes, these are often not real-time and can be delayed by up to 20 minutes. So, when you're looking at quotes on any site, check the time posted next to them to confirm if they're actually real time.
Having accurate real-time quotes is particularly important for traders like you, because even a tiny delay between the quote and the actual market can turn a profit into a loss.
For those doing rapid intra-day trading, it's critical to get real-time quotes rather than delayed ones.
Real-Time Stock Quotes vs. Delayed Stock Quotes
Stock quotes come from actual trading on exchanges like the New York Stock Exchange or NASDAQ. You can get quotes for the Dow Jones, other indices, or individual stocks from various financial news sources. But some services don't provide real-time info and instead delay quotes by 15 or 20 minutes.
Prices of actively traded stocks can change dramatically from minute to minute or even second to second, so knowing the current price is essential. In a fast market where prices rise or fall quickly, even real-time quotes struggle to keep up, and a 15- or 20-minute delay makes the quote practically useless since the stock could have shifted significantly.
For a casual investor like you who isn't trying to time the market, delayed quotes are usually sufficient. If you have a long-term portfolio you don't plan to sell soon, you don't need second-by-second updates. Delayed quotes give you a general idea of where stocks and indexes stand and their trends.
Delivering real-time quotes requires effort and technology, which costs money. If companies don't want to cover that, they stick to delayed quotes. For example, Reuters offers plenty of financial data, but its stock quotes are delayed by at least 15 minutes. Often, real-time quotes are available through premium subscription services from financial news providers.
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