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Quote

A quote refers to the latest price information for a financial instrument — such as a stock, ETF, or futures contract. It typically includes the current bid price (highest price a buyer is willing to pay), ask price (lowest price a seller is willing to accept), and the last traded price. Quotes are the foundation of market data and are constantly updated during trading hours as new orders enter and trades occur.
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For traders and investors, quotes provide a snapshot of market activity at any given moment. They help answer simple but crucial questions like: What is this stock trading at right now? Who's buying? Who's selling? Without quotes, navigating the market would be like flying blind.

Not all quotes are created equal. There are different levels of market data, offering increasingly detailed views of trading activity:

This is the most basic and widely used type of quote. It shows:

  • Best bid and best ask (the highest buy and lowest sell offer)
  • Last trade price and volume
  • Often includes open, high, low, and close prices for the day

Level 1 quotes are enough for most retail investors, as they give a clear view of the current market price.

Also known as market depth, Level 2 quotes display:

  • Multiple bid and ask prices at various price levels (not just the best)
  • Order sizes (how many shares/contracts are at each level)
  • Often includes market maker or participant IDs (depending on the platform)

This data is crucial for day traders and scalpers, as it helps them assess short-term supply and demand, liquidity, and potential price movements.

Level 3 access goes beyond viewing — it allows direct interaction with the order book. This level is typically reserved for market makers and institutional participants, giving them the ability to:

  • Submit, modify, and cancel orders directly
  • See the full depth of market across multiple price levels
  • Engage in high-frequency or algorithmic trading strategies

Level 3 is rarely available to retail traders and is more commonly used by broker-dealers and trading firms.

Modern trading platforms and data providers offer various ways to access quote data, depending on your needs and use case:

  • HTTP APIs provide access to both real-time and historical quote data through on-demand requests. These are ideal for integrating into trading platforms, research dashboards, or analytical tools where updates are needed periodically rather than continuously. They’re straightforward to use and perfect for low-frequency strategies or scheduled data pulls.
  • WebSocket APIs deliver real-time streaming quotes, pushing updates instantly as market prices change. This method is essential for high-frequency trading systems, live charts, or algorithmic strategies where every second counts. With one open connection, you can track dozens or hundreds of symbols in real time, without the overhead of constant polling.
  • Order Book Snapshots offer periodic “frozen moments” of the order book, showing all active bids and asks at a specific point in time. These are especially useful for historical analysis, backtesting, or regulatory reporting, where it’s important to know what the market looked like at precise intervals.

Each method plays a different role in how market data is consumed and should be chosen based on how fast and how often you need to see quote updates.

Understanding the timing of quote data is critical:

  • Real-time data reflects prices as they happen, with minimal delay (milliseconds to a few seconds depending on the source). This is essential for intraday traders and anyone executing orders based on current market activity.
  • Historical quotes refer to past bid/ask/last trade information, useful for backtesting strategies, building indicators, or analyzing patterns over time.

Keep in mind that some data platforms offer delayed quotes (often 15 minutes behind) unless you pay for real-time access — this can be fine for research, but not for active trading.

  • A quote is not a guarantee — it's simply the most recent snapshot of price activity. Prices can move quickly, especially in volatile markets.
  • Bid and ask prices represent intent, not certainty — large orders may impact fills or disappear entirely.
  • Level 1 is sufficient for most investors, but Level 2 can offer a trading edge for those who know how to interpret order flow.
  • Choose your data method (API vs. snapshot vs. stream) based on how time-sensitive your application is.
  • If you're trading based on quotes, especially real-time ones, data accuracy and speed matter — low-quality data can lead to costly decisions.