What it is:
A real-time quote is a stock quote that feeds directly from the exchange and does not have a time delay.
How it works/Example:
A bid price and an ask price, but real-time quotes go beyond just those two pieces of data.
For example, a level I quoted price is the real-time bid and ask price for a security that trades on the Nasdaq or over-the-counter markets. They do not disclose which market makers are bidding for or the security, whether there are limit orders on the security, or the size of potential trades at a particular price.
A level II quoted price is a set of real-time trading information for a security that trades on the Nasdaq or over-the-counter markets. It includes the real-time bid price, ask price, size, price of the last trade, size of the last trade, the high price for the day, the low price for the day, and a ranked list of the real-time and ask prices from participating market makers.
A level III quoted price includes all of the above but also allows a to change its bids, offers, and order sizes for securities in which it makes a , as well as execute orders, change , and send out trade confirmations.
Why it matters:
Making money for a proprietary feed. available on Yahoo or Google, for example, are almost never real-time and thus can cost day traders and other investors who are concerned with second-by-second price changes.in the sometimes means being able to pounce at exactly the right time. Real-time quotes inform investors about the prices of securities and allow them to act quickly. It is important to , however, that obtaining real-time quotes often costs