Flash pricing displays the latest stock prices on highly traded stocks when trading is so high that prices are not updated in real time. This allows investors to access information within a reasonable period of time and respond to market conditions. With improvements in technology, flash pricing is less common today.
A price flash is a price display on a ticker tape that appears when trading on a stock is so high that stock prices are not updated in real time. Instead of allowing price accumulation to run its course and slowly catch up with current activity, flash price taps into the data stream and publishes the latest price on highly traded stocks. Depending on how much trading is taking place at the time, the flash price may be inserted into the tape readout every five to ten minutes until the report picks up the pace of trading activity.
The concept of flash pricing has been around for many decades. While ticker tape offered a significant improvement over older methods of reporting trading activity, the equipment used to provide the information still had limitations that could create delays in reporting market activity in a timely manner. The implementation of the flash price feature made it possible for investors to still receive information on the most popular stocks of the day on a regular basis, even if the pace of buying and selling activity was particularly fast. While not as efficient as receiving the data in real time, inserting trading figures for major stocks every five to ten minutes eliminated the need to wait for a lull in trading where the ticker tape would catch up with the real time report. all recently executed operations. Once the trading in the market slowed down a bit, the machine could gradually catch up, and trading in the heavy stocks would resume in real time.
By arranging a means of reporting highly traded stock activity, even when market activity is unusually high, investors can have access to highly traded stock information within a reasonable period of time. This makes it possible to respond to market conditions, choosing to buy or sell shares of those shares before the opportunity to profit from the current movement of those shares passes. While price flash is less desirable than receiving up-to-the-minute reports on trading activity, this strategy is better than waiting for long periods of time, as the ticker tape continues to report trades in chronological order, possibly taking thirty minutes or more. in becoming Actual.
The incidence of a flash price appearing on the ticker tape is somewhat less than in the past. Due to improvements in technology, the process of receiving data via ticker tape is much faster and able to keep up with most business situations. Today, trading volumes need to be exceptionally fast to trigger the mechanism and get into regular reports on current trading activity on major market stocks.
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