Market data refers to the real-time or historical information about financial instruments traded on capital markets, such as stocks, bonds, commodities, derivatives, and currencies. This data provides critical insights into the performance and behavior of the market, enabling investors, traders, analysts, and financial institutions to make informed decisions.
Types of Market Data:
Pricing Data:
- Includes current and historical prices of financial instruments, such as the latest trading price, bid and ask prices, opening and closing prices, and high and low prices for a given period.
Volume Data:
- Represents the number of shares, contracts, or units traded during a specific period. It helps assess the liquidity and activity level of a security.
Bid and Ask Data:
- Shows the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask). The difference between these is called the bid-ask spread, which indicates market liquidity.