TBT (tick-by-tick) provides a stream of real-time transactions that are taking place, while standard market depth only gives a snapshot of the top ten or five orders.

Key Difference Between TBT and Standard Market Depth

• Data

TBT captures every single order placed, changed, and executed in real time, while Standard market depth gives a snapshot of the total bid and ask orders placed at certain price levels.

• Details

TBT provides volume, time, and price details of every trade, whereas Standard market depth only records the order quantities at a particular price level.

• Data Updates

TBT data is raw data and is updated in real-time. It is used by active traders and algorithmic traders who need to constantly monitor the market to react within seconds. Standard market depth is updated periodically and hence can miss out on sudden price fluctuations due to high volatility.

• Used by

TBT data is often used by scalpers and high-frequency traders, who require real-time data to execute and place orders. Standard market depth is used by intraday and swing traders who use it for identifying basic support and resistance levels and determining market liquidity.

• Market Dynamics

TBT captures all orders placed in real-time along with their volume, sequence, and size. This helps traders aggressive large volume traders and smaller, less influential traders. Standard market depth represents future potential demand and supply. This data can be easily manipulated by spoofing, a tactic where traders place large orders without the intention of fulfilling them.

Between TBT and standard market depth, which tool suits you best will depend on your trading strategy.