Which term is generally measured in ticks per second, constrained by bandwidth and processing speed?

Which term is generally measured in ticks per second, constrained by bandwidth and processing speed?

• A. Volume
• B. Spread
• C. Update rate
• D. Limit order

Answer: (C)

Update rate captures how often the system emits new market data, measured in ticks per second. This rate is limited by how much data can be transmitted (bandwidth) and how quickly the hardware/software can process and generate updates (processing speed). Volume, spread, and a limit order describe quantity, price differences, or a type of instruction, not the pace at which updates occur, so they don’t fit.

Update rate captures how often the system emits new market data, measured in ticks per second. This rate is limited by how much data can be transmitted (bandwidth) and how quickly the hardware/software can process and generate updates (processing speed). Volume, spread, and a limit order describe quantity, price differences, or a type of instruction, not the pace at which updates occur, so they don’t fit.