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Market Data Feeds Meaning

Real-time "streams" of information coming from exchanges, including price updates, trade history, and "Order Book" changes. These feeds are the "eyes and ears" of trading bots and financial applications.

There are two types: Level 1 (just the current price and volume) and Level 2 (the full order book, showing every "Bid" and "Ask"). Professional traders pay for high-speed, direct feeds to ensure they are seeing the price "first," as even a few milliseconds of delay can lead to "Slippage." In decentralized finance, "Oracles" (like Chainlink) act as the market data feeds.

They "bridge" the price from the real world (centralized exchanges) onto the blockchain so that "Smart Contracts" can know the price and trigger liquidations or swaps accurately.

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