Capterra Glossary
ITCH Protocol
ITCH protocol is a data feed protocol that stock market subscribers can use to get fast quotes on stock prices on the stock exchange. A basic stock quote will typically include the asking price, stock's bid, last traded price, and the stock volume traded. The ITCH protocol takes nanoseconds to relay real-time quote information to a network, which is the key to winning trades at an optimal price before the market shifts. ITCH protocol is commonly used on NASDAQ-owned liquidity pools and exchanges, as well as other trading platforms such as the ASX Trade.
What Small and Midsize Businesses Need to Know About ITCH Protocol
Small hedge funds often use ITCH protocol to gain quick access to stock quotes in real time, as this information is necessary to meet requirements of latency sensitive trading strategies. Latency sensitive trading strategies require hedge funds to react to market events faster than their competition to increase the profitability of their trades.
Related Terms
- Compound Annual Growth Rate (CAGR)
- Financial Planning and Analysis (FP&A)
- Selling General and Administrative (SG&A) Expenses
- Hedge Fund
- Gateway
- Record to Report (R2R)
- ROIT (Return on Information Technology)
- Chief Revenue Officer (CRO)
- SAC (Subscriber Acquisition Cost)
- ROE (Return on Equity)
- Tokenization
- Net Present Value
- Fintech
- Financial Management System (FMS)
- Business Capability Modeling