Investing in the stock market can be difficult, even for the most financially savvy investors. The money to be earned can be enormous while the effects of losing money can be devastating both financially and personally. If you are about to enter the realm of buying and selling stocks utilizing an online trading account, it is important that you understand the different between real-time and delayed stock quotes.
Real Time Quotes
Real-time stock quotes provide you, the investor, with actual continuous streaming information as it is happening in real time. Whether a stock increases or decreases in value, if you follow the activity via a real-time stock quote, you will be following the actual trail of movement. Some websites offer real-time stock quotes for a fee, courtesy of a live feed so you can not only see what is happening not only in the United States, but in the world wide markets.
Delayed Stock Quotes
Delayed stock quotes tend to run about 15 minutes after the fact as the information feed is delayed and the theory is to provide NASDAQ traders on the floor a bit of an advantage. According to NASDAQ's website, "Trading information on NASDAQ and OTCBB companies is delayed at least 15 minutes. Trading information on NYSE and AMEX companies is delayed at least 20 minutes per those exchanges' rules. The Most Active section is delayed at least 15 minutes for NASDAQ and 20 minutes for AMEX and NYSE. The NASDAQ Indices and the Major Indices scrolling ticker are delayed at least 1 minute. Mutual Funds are updated at the end of each day." This theory is generally applied to stock market feeds around the world.
The main reason why both real-team and streaming stock quotes exist is for money. Many brokerage firms pay large amounts of money for the right to access real-time information. When there is money to be made, the stock market will find a way to make it.
