Upstox pioneers the provision of accurate tick-by-tick data for charts in India
Just recently in an industry first move Upstox has started providing TBT data for charting purposes becoming a pioneer in India to offer TBT charting data via its mobile and web platforms.
Access to error-free market data is crucial for successful trading. Most retail traders rely on charts that fetch snapshot market data from exchanges.
However, snapshot data captures a limited number of trades per second, regardless of how many trades occurred within that second. In other words, it provides a sample (a single trade) rather than all executed trades per second. This can lead to inaccuracies in the displayed OHLC (Open, High, Low, Close) data on candlestick charts, affecting price triggers.
So is there a mechanism to get all trades to ensure accuracy?
To ensure high accuracy, professional traders globally trust Tick-by-Tick (TBT) market data instead of snapshots for better trading outcomes. Typically, institutional brokers offer TBT data to high-frequency traders.
What is Tick-by-tick (TBT) data?
TBT data captures every individual transaction in the market, including price, volume, and time stamps. It offers a comprehensive view of market activity instead of just a snapshot. However, it requires more storage space and computational power, making it expensive for retail traders.
Is TBT data 100% accurate to plot charts?
Since TBT captures all market activity, there is no data loss of trades on the exchange. When TBT data is used for charting, it provides the most accurate OHLC and volume data. Additionally, data points like Best Bid and Ask can be plotted correctly if needed.
Comparing charts that use TBT data to those using snapshot data, the former show higher highs, lower lows, and more data points in candlestick patterns. This demonstrates that TBT data is more accurate and empowers traders to conduct more precise technical analysis using indicators, drawings, and patterns (e.g., head and shoulder, double top, etc.).
Who uses TBT data?
TBT data is commonly used by high-frequency and algo traders. Market researchers also rely on TBT data for a deeper understanding of market microstructure and liquidity patterns.
Does that mean retail traders cannot access TBT data?
To access TBT data, brokers need server racks within the exchange premises to capture all market data activity. This allows them to quickly compute and process data for accuracy. Owning a server in the exchange is known as "Colo," and it comes at a cost borne by the broker.
Which broker provides TBT data for retail investors and traders?
Most brokers provide snapshot data to its clients which is updated every second. When it comes to TBT data, Zerodha claims to provide such information through its '20 depth bid and ask price' feature for retail consumption. However, they don’t appear to offer the same on their charts.
Just recently in an industry first move Upstox has started providing TBT data for charting purposes becoming a pioneer in India to offer TBT charting data via its mobile and web platforms.
By making TBT data accessible to retail investors, modern discount brokers like Upstox are playing a pivotal role in fostering more efficient markets. Whether other brokers will follow suit in providing the most precise data to retail investors remains to be seen.
Upstox, as the first broker in India to provide high accuracy TBT charting data, is at the forefront of this industry shift, ensuring that traders have access to the most accurate information for their decision-making.