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Stock markets are monetizing realtime data

December 23, 2020

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Realtime data. It’s what separates the digital medium from any other one. With digital data enablers, you can smartly evaluate data right down to the last nanosecond. That’s why the stock market loves digital systems. The conversion of the same from earlier systems was made in 2001 in the United States when the SEC-mandated all of the stock trading to move to electronic. 

This helped people make millions of trades around the world with all systems able to handle processes sooner. Also, real-time data shows volume information or updated prices on a minute-by-minute basis for any stock, and digital transactions help make a record of the same as well.

Real-time data is a boon for traders who can buy and sell securities during the day and make quicker decisions on price moves.

What are the different real-time data points for stock markets?

There are so many data points that brokers can tap into in the stock market that are updated real-time. These include -

  1. Intraday chart -

One of the best ways real-time data is used extensively in trading applications is in intraday charts that monitor the fluctuations in a stock price. These charts are used extensively by technical traders as it could cost them dearly if they trade on stale data. Intraday charts provide real-time charts on reversion points which provide traders with crucial information on when to sell or when a stock begins to lag or go on a bullish run. 

  1. Profit and Loss -

Data is also sent on trading applications that can show the real value of an existing stock position for a trader. They can show the potential profit or loss incurred in real-time and this gets updated with every tick and traders can use this to cut their losses on long-standing stocks or for those who want to buy stock that was sold short earlier.

  1. The trading volume -

The real-time data include stock volumes that can be traded in the day-time and it isn’t necessarily restricted to the price of the stock. Real-time volume also shows the total participants interested in a particular stock. 

  1. Delayed data -

Traders who are glued to their screens can react to stock news as soon as a story breaks. Delayed data is for those with a longer view of investing in stocks. They depend on company valuation rather than quick price changes when it comes to their trading decisions. These traders hold stocks for weeks or even years depending on their perception of the potential of the stock.

How does India’s stock exchange use real-time data?

The Bombay Stock exchange is Asia’s oldest stock exchange and generates a ridiculous 400 GB of data a day. It needs scalable data platforms that can keep up with the growing demands of the stock market and shorten the time for data analytics and reporting as well. 

The BSE makes data-driven decisions in real-time and takes 70% less time than before to generate the most complex reports. This is done with the help of machine learning tools. It uses real-time information and improves the governance of data and also complies with SLAs that are the latest in the industry. This means it takes only 20 minutes to generate a trade report that would previously take six hours. Since the cloud is also being used, the BSE reduces all of its operational costs 20x. 

India faces an average loss of 12 crores due to data breaches and BSE is now able to save and monetize data real-time. From authorization, encryption and auditing solutions, the market can enhance data security, access management and improved identity. 

The move by BSE also allows them to gain better capability from social media analytics. Earlier, the exchange monitored media to identify suspicious material but that was a time-consuming process which also involved the risk of missing out on news. The automated push meant that surveillance analysts can receive updates in real-time and also clarify any suspicious material with the companies involved. It protects the integrity, investor confidence and brand value of the stock market.

How is the stock marketable to monetize this data then?

The stock market smartly uses all of the data points they receive and relay it to the thousands of investors sitting across the nation, or even worldwide. This makes it easier for them to get people to invest based on the latest trends, with more traders able to do multiple trades within a short space of time.

It also gives them the liberty to provide these traders with stock news that is relevant, fresh and absolutely on-point so that they do not miss out on anything important. By doing so, traders have an increased faith with the market and are able to smartly manoeuvre and move their money around for better investments that are good for both the long- and the short-term as well.

How does real-time chat benefit traders?

Real-time chat is one of the other benefits that come with the stock market. A lot of traders rely on the internet in order to get their information and they need to co-ordinate with multiple brokers across networks. Real-time chat makes it easier for them to share information with these brokers and get them to buy/sell a certain stock when the price is right.

Yalgaar is one of the best real-time chat integration frameworks that work at incredible speed. It can handle transactions at super speed and also powers millions of messages a second.

It also provides connection state recovery and offline messages that come with a 100% guarantee of message delivery. You can also enjoy scalable infrastructure right up to the cloud as it handles a massive number of connections in a concurrent manner. The systems are also easy to integrate and create real-time applications for a slew of devices, including mobile, IoT and web as well. 

Thus, with the right tools in hand, you’ll be able to smartly monetize every aspect of trading in the world of the stock exchange. A good trader will be able to use real-time data to their benefit and make profits galore! Good luck!

By  yalgaar team   |  December 23, 2020 << Back