Bridging the gap: Upstox launches TBT engine, bringing pro-level trading access to retail traders
Tiger Global and late Ratan Tata backed Upstox aims to empower retail traders with the launch of its Tick-by-Tick (TBT) Engine, designed to democratize trading access and help traders truly “Trade Right’ in the equity markets.
Launch of TBT Engine is seen as huge enabler as it democratises information access for retail traders, who unfortunately were hitherto losing money due to information asymmetry. Retail traders had limited access to quality market data putting them at serious disadvantage to institutional investors.
“TBT is our version of GPS for trading. Retail Trading will never be the same again. TBT is not just an upgrade, it’s a paradigm shift. It is like huge light shining on areas where it was dark. Using technology, we are able to bring data visualisation to help retail traders make better decisions.
Institutions historically had an uneven access or unfair advantage. This (launch of TBT engine) is our way of levelling the playing field and bringing the same level of technology access to the masses”, Ravi Kumar, CEO & Co-founder, Upstox told businessline.
Upstox has about 15 million customers who can potentially benefit from the data visualisation facility introduced through TBT Engine. This wealth management platform commands a valuation of about $3.5 billion. More than 75 per cent of its customers are millennials.
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Designed specifically for retail traders, the TBT Engine provides real-time, precise data that was previously available only to institutional investors.
By democratising access to advanced trading tools, Upstox is leveling the playing field for everyday traders who were once at a disadvantage, Kumar said.
“It is a significant breakthrough tool. As a retail trader, you put the transaction in dark. What are the odds of this getting filled? With TBT engine, we now give you the probability as we read the entire book in real time. We can now mathematically predict the odds of your getting filled in that order”, Kumar added.
In India, Retail traders unfortunately lose more money than non-retail in the world of trading.
What is TBT market data?
Currently, there are two ways in which brokers get market data feeds from stock exchange — one is Snapshot data (fetched only in packets of five) and the other is TBT. In contrast, TBT data streams the entire exchange order book capturing every transaction in real time. This provides unparalleled accuracy, complete market visibility and no gaps in information, Kumar said.
The TBT Engine offers a real-time stream of every market transaction. Snapshot data, commonly used by many brokers, only updates at intervals and provides a limited view of the market. In contrast, TBT data captures every trade and price change as it happens, giving traders a complete picture of the market’s movements, Kumar said.
“We think TBT engine launch is huge benefit for the industry. The chances of you (retail trader) being successful on Upstox goes manifold if you place order on Upstox Pro versus any other platform because of the TBT engine”, Kumar said.
“Institutional traders that sit in or near NSE had the edge, all of a sudden we have been able to democratise that edge and give that edge to retail masses”.
Some of the features of Upstox’s TBT Engine include Order Flow Insights; Depth Rank; Quantity ahead; extended Market depth view up to 30 levels and Trade Price checker.