sifting/io
Data concepts

What is an aggregated fair price?

The same asset can trade at slightly different prices in different places at the same instant, which raises the question of which price is definitive. An aggregated fair price addresses this by combining many sources into one representative value. The sections below explain why prices differ across sources, how aggregation produces a single reference, and why an aggregated value is more robust than any individual feed.

6 min readData concepts
An aggregated fair price is a single reference price computed by combining quotes from multiple independent sources, weighted by reliability and filtered for outliers, so that no individual source can distort the result.

Key points

  • The same asset can quote differently across sources at the same moment.
  • Aggregation combines many sources into one representative reference price.
  • Weighting and outlier filtering prevent a single faulty or thin source from skewing the result.
  • An aggregated price is more stable and harder to manipulate than any single feed.

Why one asset has many prices

An asset rarely trades in only one place. Each source has its own buyers and sellers, its own liquidity, and its own moment-to-moment supply and demand, so quotes differ slightly even for the same instrument at the same instant. A single source reflects only that venue's view, including conditions such as thin liquidity, a brief dislocation, or a stale quote. Aggregation addresses how to combine these partial views into one reliable value.

How aggregation produces one value

Aggregation collects quotes from several independent sources and combines them into a single price. Rather than a simple average, a well-constructed fair price weights each source by its reliability and liquidity and excludes values that deviate too far from the consensus before combining the remainder. The result tracks the broad market rather than any one venue and updates continuously as new quotes arrive. The specific weighting and filtering distinguish a robust fair price from a plain average.

Why it is more robust

A single feed represents a single point of failure. If that source lags, becomes thin, or prints a bad quote, anything relying on it inherits the error. An aggregated price is resistant to all three: an outlier is filtered before it affects the result, a thin source is down-weighted, and the loss of any one input still leaves a usable consensus. This robustness also makes aggregated prices harder to manipulate, since influencing the result would require moving many sources at once rather than one.

Where a fair price applies

An aggregated fair price is the natural reference wherever a single defensible value is required rather than a venue-specific quote, including portfolio valuation, settlement, alerting, and headline price display. It is not a statement about the price at which a transaction can be executed on a particular venue, which depends on that venue's own order book. It is a representative market price designed to be stable and resistant to distortion.

On SiftingIO

Fair price on SiftingIO

Fair-price aggregation is central to SiftingIO. The platform ingests quotes from multiple independent sources across crypto, forex, and commodities, computes a weighted, outlier-filtered fair price on a continuous clock, and publishes it under one schema over REST and WebSocket. The full method, including how sources are weighted and how the calculation behaves under stressed market conditions, is documented in the data methodology.

FAQ

Common questions

What is an aggregated fair price?

It is a single reference price computed by combining quotes from many independent sources, weighted by reliability and filtered for outliers, so no one source can distort the result.

Why not just use one source's price?

A single source carries that venue's conditions, such as thin liquidity, brief dislocations, or stale quotes. An aggregated price combines many sources, so it tracks the broad market and remains usable if any one source fails.

Is a fair price the price I can trade at?

Not necessarily. A fair price is a representative market reference, ideal for valuation, settlement, and display. Executable prices depend on a specific venue's order book at that moment.

How does SiftingIO compute its fair price?

SiftingIO aggregates multiple independent sources into a weighted, outlier-filtered fair price on a continuous clock. The full method is documented in the data methodology.

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