July 17, 2025

5 Things Every Trader Should Know About Market Data Feeds

In today’s fast-paced trading environment, having access to accurate and timely market data can be critical. No matter what level of trader you are, understanding how market data feeds work can significantly impact your trading performance. Here are the top 5 things we think every trader should know about market data feeds.

1. Real-Time vs. Delayed Market Data: Why It Matters

Real-time data feeds provide instantaneous updates on asset prices and trading volume as market events happen. This means traders receive the current market conditions, enabling quick reactions to price movements, news, or market shocks with low latency.

Delayed data feeds, on the other hand, lag behind the actual market prices—typically by 15 to 20 minutes—and are often offered free. While delayed data may be sufficient for long-term investors or those monitoring markets casually, traders executing short-term strategies, scalping, or day trading should subscribe to real-time data to help avoid missed opportunities and unfavorable trade fills.

Key takeaway: Choosing between real-time and delayed data depends on your trading style, but most active traders benefit greatly from the timeliness of real-time feeds.

2. The Critical Role of Latency in Trading Performance

Latency is the delay between when market information is generated at the exchange and when it reaches your trading platform. In high-speed markets, even milliseconds matter. High latency can cause you to trade on outdated information, resulting in slippage—where you execute at a worse price than expected.

Low-latency data feeds are essential for algorithmic traders, high-frequency trading (HFT), and those employing scalping strategies. These traders rely on ultra-fast data to spot and exploit fleeting market inefficiencies. Conversely, retail traders with longer time horizons may not feel the impact of latency as strongly, but should still consider the effects of latency when selecting a provider.

Key takeaway: Minimizing latency improves trade timing and execution quality, especially in volatile markets.

3. Market Data Feeds Are Asset-Class Specific

Market data feeds are tailored to specific asset classes, such as equities, futures, options, forex, and cryptocurrencies. Each asset class has unique characteristics and trading hours, influencing the nature of its data feed:

Equities: Often come with Level 1 (top of book) and Level 2 (full order book) feeds, providing varying depths of market insight.
Futures: Usually include information on contract prices, open interest, and volume for specific delivery months.
Options: Data feeds cover complex chains with strike prices, expiration dates, and the value of various statistics know as the Greeks.

Forex & Crypto: Tend to offer continuous 24-hour pricing from various liquidity providers.

Knowing the specific feed requirements for your traded asset classes helps you receive the most relevant and detailed data available.

Key takeaway: Match your data feed to the markets you trade for optimal insights and decision-making.

4. Understanding Market Data Fees and Subscription Models

Market data is often subject to fees based on exchange policies and subscription types. Costs vary depending on:

Data type: Real-time feeds generally cost more than delayed data.
Depth: Level 2 or full order book data costs more than Level 1.
User status: Professional traders often pay higher fees than non-professionals or retail users.
Exchange: Different exchanges have their own fee structures and may charge for individual symbols or entire market packages.

Some platforms bundle fees within trading commissions, while others require separate subscriptions. It’s crucial to understand these costs upfront to avoid surprises and provide data that aligns with your trading needs.

Key takeaway: Research and plan for market data costs to receive access to necessary information without unexpected expenses.

5. API and Platform Integration: Why Delivery Method Matters

How you receive and use market data is as important as the data itself. APIs (Application Programming Interfaces) enable traders to programmatically access data feeds and integrate them into automated trading systems, custom analytics, or proprietary dashboards.

A well-designed API can offer real-time streaming, historical data access, and fast order routing—all crucial for efficient trading operations. Additionally, seamless integration with trading platforms enhances user experience, allowing you to monitor markets and efficiently execute trades within the same ecosystem.

When selecting a broker or data provider, ensure their API and platform support your technical and strategic needs.

Key takeaway: Strong API and platform integration enable faster, more reliable access to market data and streamline your trading workflow.

Final Thoughts

Familiarizing yourself with market data feeds and how they work is essential for every trader aiming to improve accuracy and execution speed. From understanding real-time versus delayed data to choosing the right feed for your asset class and minimizing latency, these factors collectively influence the probability of trading success.

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All investing incurs risk including, but not limited to, the loss of principal. This material in this communication is not a solicitation to provide services to customers in any jurisdiction in which Lime Trading is not approved to conduct business. The material in this communication has been prepared for informational purposes only and is based upon information obtained from sources believed to be reliable and accurate; however, Lime Trading Corp. does not warrant its accuracy and assumes no responsibility for any errors or omissions. The information provided is not an offer to sell or a solicitation of an offer to buy any security or a recommendation to follow a specific trading strategy. Lime Trading Corp. does not provide investment advice. This material does not and is not intended to consider the particular financial conditions, investment objectives, or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.