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A flash price is a recent price display on a ticker tape that appears when trading is heavy and prices don’t update in real-time. It allows investors to receive information on heavily traded stocks within a reasonable amount of time, but it’s less desirable than receiving up-to-date reports. The incidence of a flash price is lower due to improvements in technology.
A flash price is a price display on a ticker tape that appears when trading on an exchange is so heavy that stock prices don’t update in real time. Rather than letting the price backlog run its course and slowly catch up with current activity, Lightning Price breaks into the data stream and posts the most recent price on heavily traded stocks. Depending on the amount of trading going on at the time, the flash price may enter the tape reading every five to ten minutes until the report picks up the pace of trading activity.
The concept of a flash price has been around for many decades. While ticker tape offered a significant improvement over older methods of reporting trading activity, the equipment used to deliver the information still had limitations that could create backlogs of reporting market activity in a timely manner. The implementation of the flash pricing feature allowed investors to still receive information on the day’s most popular stocks on a regular basis, even though the pace of buying and selling activity was particularly buoyant. While not as efficient as receiving live data, entering trading data for major stocks every five to ten minutes eliminated the need to wait for a lull in trading activity where the ticker tape would reach Real-time reporting on all recently performed operations. Once market trading slowed down a bit, the machine would gradually recover and heavy stock trading would resume in real time.
By providing a means to report activity in heavily traded stocks, even when market activity is unusually heavy, investors can gain access to information on heavily traded stocks within a reasonable amount of time. This allows you to respond to market conditions, choosing to buy or sell shares of those stocks before the opportunity to profit from the current movement of those stocks passes. While flash pricing is less desirable than receiving up-to-date reports on trading activity, this strategy is better than waiting for long periods of time while the ticker tape keeps reporting trades in chronological order, and perhaps takes thirty minutes or so. more to become current.
The incidence of a flash price appearing on the ticker tape is slightly lower than in the past. Thanks to improvements in technology, the process of receiving data via ticker tape is much faster and able to keep up with most trading situations. Today, trading volumes must be exceptionally fast to trigger the break-in mechanism and provide regular reports on current trading activity on major market stocks.
Smart Asset.
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