How Is Data Normalization Critical When Aggregating Feeds from Multiple Crypto Exchanges? ⎊ Path

How Is Data Normalization Critical When Aggregating Feeds from Multiple Crypto Exchanges?

Data normalization converts disparate data formats, naming conventions, and contract specifications into a single, canonical format. This is critical because exchanges use different symbology, expiry date formats, and order book structures.

A normalized feed allows the quoting engine to compare prices accurately and maintain a consistent view of the market. Without it, pricing models would receive inconsistent or unusable data, leading to quoting errors.

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Glossar

Data Normalization

Calibration ⎊ Data normalization within cryptocurrency, options trading, and financial derivatives serves as a critical calibration process, adjusting disparate data scales to a common range to prevent undue influence from variables measured in larger units.

Consolidated Order Book

Aggregation ⎊ A consolidated order book in cryptocurrency, options, and derivatives represents a unified view of liquidity, aggregating order information from multiple exchanges or trading venues into a single feed.