Real Time: What It Means Compared to Delayed Quotes
What “real time” means
Real time refers to information that is relayed with little to no delay from when an event occurs. In financial markets, a real‑time quote shows the current bid, ask and last-trade price as close as technologically possible to the moment of the trade.
How real‑time and delayed quotes are produced
- Stock and index prices originate from exchanges (e.g., NYSE, NASDAQ) as trades occur.
- Market data providers and brokerages distribute those prices to websites, apps and trading platforms.
- Real‑time delivery requires infrastructure and exchange data feeds; that capability costs money and often requires licensing.
- Many free public sources instead provide delayed quotes—commonly delayed by about 15–20 minutes.
Real‑time vs delayed quotes: practical differences
- Speed and accuracy: Real‑time quotes reflect the market now. Delayed quotes reflect the market minutes earlier and can differ materially in volatile conditions.
- Usefulness by investor type:
- Active and intra‑day traders: need real‑time quotes to execute orders, manage risk and avoid slippage.
- Long‑term, buy‑and‑hold investors: delayed quotes usually provide enough information for portfolio monitoring.
- Fast markets: during rapid upward or downward moves, even a short delay can turn a profitable opportunity into a loss; delayed data can be effectively useless in such periods.
Access and cost
- Many brokerages and paid market data services provide real‑time quotes as part of their platform or a subscription tier.
- Free financial websites and news services commonly offer delayed feeds to avoid the costs and licensing requirements of real‑time data.
- If you rely on up‑to‑the‑second pricing, choose a provider that explicitly states it offers real‑time exchange feeds.
Practical tips
- Always check the timestamp shown near a quote to confirm whether it’s real time or delayed.
- For active trading, use a brokerage or data provider that guarantees real‑time feeds and low-latency execution.
- If you’re not timing trades aggressively, delayed quotes are typically sufficient and cost‑effective.
Key takeaways
- Real time = near‑instantaneous market data; delayed = data that reflects prices minutes earlier.
- Traders who need precise execution require real‑time quotes; casual or long‑term investors can usually rely on delayed data.
- Real‑time market data involves additional technology and licensing costs, which is why some services offer it only to paid subscribers.