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Stock Scanner

A Comprehensive Guide on the Use and Benefits of Stock Scanners in Real-Time Trading

Compact Explanation

A Stock Scanner is a tool identifying real-time stock patterns and market trends.

Image of a Stock Scanner Tool


The financial markets are full of opportunities, but finding them in real-time can be challenging. This is where a tool like a stock scanner comes into play. This guide will dive into the concept of a stock scanner, its benefits, and how it differs from a stock screener, enabling you to take full advantage of the real-time trading market.


A Stock Scanner, also known as a Stock Market Scanner, is a powerful tool used by traders to filter and search stocks based on specific criteria that occur in real-time. It helps traders identify trading opportunities instantly as market conditions change throughout the trading day.

Context and Use

Stock scanners are primarily used in active trading, particularly day trading and swing trading. These traders rely on real-time data to make quick decisions. A stock scanner allows them to track multiple stocks simultaneously and alert them when stocks meet their predetermined conditions.

Detailed Explanation

Stock scanners provide real-time alerts based on live data, enabling traders to spot trading opportunities as they occur. These tools can be customized to filter stocks based on various criteria such as price changes, volume changes, fundamental indicators, and technical analysis patterns. This real-time tracking differentiates stock scanners from stock screeners, which use end-of-day data and are therefore more suited for long-term investing rather than active trading.


Consider a day trader who uses a stock scanner to identify stocks with sudden increases in volume. They set the scanner to alert when any stock's trading volume exceeds its average volume by 50% within a 5-minute timeframe. When such a condition occurs, the stock scanner alerts the trader, allowing them to analyze the stock further and potentially capitalize on the trading opportunity.

Related Terms

  • Stock Screener

  • Day Trading

  • Swing Trading

  • Real-Time Data

  • Stock Volume

Frequently Asked Questions (FAQ)

  1. What is a Stock Scanner? - A stock scanner is a tool used by traders to identify trading opportunities in real-time based on specific, predetermined conditions.

  2. How does a Stock Scanner work? - A stock scanner works by continuously scanning the market and alerting traders when stocks meet their specified criteria in real-time.

  3. What's the difference between a Stock Scanner and a Stock Screener? - A stock scanner provides real-time data, making it ideal for active trading, while a stock screener uses end-of-day data and is better suited for long-term investing.

  4. Why use a Stock Scanner? - Stock scanners help traders track multiple stocks simultaneously and identify trading opportunities instantly as market conditions change.

  5. Who can benefit from using a Stock Scanner? - Active traders, particularly day traders and swing traders, can significantly benefit from using a stock scanner.

  6. Can a Stock Scanner guarantee successful trades? - No, a stock scanner can provide potential trading opportunities, but the success of the trade depends on various factors, including the trader's skill and market conditions.

Key Takeaways

  1. Stock scanners are vital tools for active traders, providing real-time data and instant alerts based on specific conditions.

  2. Unlike stock screeners that use end-of-day data, stock scanners allow traders to identify and react to trading opportunities as they occur.

  3. A stock scanner can be customized to scan for various criteria, making it a versatile tool for different trading strategies.


Understanding and leveraging a stock scanner can significantly enhance the ability of active traders to identify potential trades in real-time. While it doesn't guarantee successful trades, it helps traders stay ahead of market changes, making it a crucial tool in a day or swing trader's arsenal.

Disclaimer: The content is intended for educational and informational purposes only and should not be considered as financial or investment advice. Trading stocks involves risk, including the potential loss of principal. For financial decisions, consider conducting comprehensive research or consulting with a qualified financial advisor.