Real-Time Quote (RTQ)

Key takeaways

• A real-time quote (RTQ) shows the instantaneous price and recent volume for a security, including the best bid and ask.
• Delayed quotes typically lag the market by 15–20 minutes; real-time quotes are immediate.
• Real-time pricing is essential for day traders, high-frequency traders, and anyone needing up-to-the-second execution accuracy; casual or long-term investors usually do fine with delayed quotes.

What is a real-time quote?

A real-time quote (RTQ) is the live display of a security’s current market price and often the most recent trade volume. Unlike delayed quotes, which are intentionally held back by 15–20 minutes, RTQs update continuously so users see the market’s current bid and ask prices.

How real-time quotes work

A typical quote shows:
* Bid — the highest price a buyer is willing to pay.
* Ask (offer) — the lowest price a seller will accept.

Example: a quote of $23.25 to $23.30 means buyers are willing to pay up to $23.25, while sellers want at least $23.30. The difference between bid and ask is the spread; higher trading volume tends to narrow that spread.

Exchanges and market data providers collect trade and order information and stream it to subscribers. Data access is often tiered:
* Level I — basic top-of-book data (best bid/ask and last trade).
* Level II/III — deeper order book details and additional liquidity information (typically for professional users and often fee-based).

Special considerations and history

Historically, quotes were transmitted by ticker tape and later published in newspapers and broadcasts. With the internet and electronic trading, the cost of distributing RTQs dropped, and many brokerages now provide them free for retail users. However, real-time data for options, futures, or full order books may still require paid subscriptions.

Some financial news services provide only delayed quotes unless you subscribe to a premium plan. Providing RTQs requires infrastructure and exchange fees, which explains why some platforms limit access.

Advantages and disadvantages

Advantages
* Accuracy at execution — knowing the live price reduces the chance of unexpectedly overpaying or underselling.
* Essential for short-term strategies — day trading and high-frequency trading rely on current prices and narrow timeframes.
* Better response in volatile markets — in fast-moving markets, delayed quotes can be misleading or useless.

Disadvantages
* Cost and complexity — full real-time feeds (especially deeper levels) can be expensive and technically demanding.
* Not necessary for many investors — long-term investors and casual traders usually do not need millisecond-level updates.
* Even RTQs can lag in extreme fast markets for some distribution channels; professionals often use specialized low-latency connections (fiber, microwave, exchange co-location).

When to use real-time quotes

Use RTQs if you:
* Trade intraday or implement time-sensitive strategies.
* Require precise execution pricing or rely on narrow spreads.
* Need up-to-date market depth and order flow information (and can pay for higher-level data).

For monitoring a long-term portfolio or making infrequent trades, delayed quotes generally provide sufficient information.

Conclusion

Real-time quotes provide immediate market prices and are critical for traders who depend on precise timing and pricing. For most retail investors focused on longer horizons, delayed quotes offer a practical, lower-cost alternative. Choose the level of market data that matches your trading objectives and the resources you’re willing to invest.