What are the key factors to consider when interpreting NBBO data for digital assets?

3 answers

• Max HarrisJul 16, 2025 · 7 months ago
  One key factor to consider when interpreting NBBO data for digital assets is the liquidity of the market. The liquidity of a market can greatly impact the accuracy and reliability of the NBBO data. A highly liquid market will have a large number of buyers and sellers, which can lead to tighter spreads and more accurate NBBO data. On the other hand, a market with low liquidity may have wider spreads and less reliable NBBO data. It's important to take into account the liquidity of the market when interpreting NBBO data for digital assets.
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• Sarissa FarmanJul 02, 2025 · 7 months ago
  Another important factor to consider is the quality and reliability of the data source. Not all data sources are created equal, and it's important to ensure that the NBBO data you are using comes from a reputable and reliable source. This can help to minimize the risk of inaccurate or manipulated data, which can lead to incorrect interpretations. It's always a good idea to do your due diligence and research the data source before relying on NBBO data for digital assets.
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• Cooley BermanNov 24, 2024 · a year ago
  When interpreting NBBO data for digital assets, it can also be helpful to consider the time frame of the data. Different time frames can provide different insights and perspectives. For example, looking at NBBO data over a longer time frame can help to identify trends and patterns, while looking at shorter time frames can provide more granular and immediate information. It's important to choose the appropriate time frame based on your specific needs and objectives.
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