Online trading: how Big Data is revolutionising the world of finance

Big Data is revolutionizing our approach to networks and our digital strategies. The arrival of new data processing tools has enabled the trading industry to dramatically change the way it operates, but also to attract a wider audience.

Big Data and finance: a golden marriage

The mass data sector is booming and should be the measure of the decade ahead. The International Data Corporation estimated that in 2016, the sale of the mass data analysis tools would reach $187 billion by the end of 2019. Not surprisingly, it is the finance and trading sector that is largely responsible for this revolution.. The analysis of mass data allows the prices of the various assets to be analysed automatically, but also to be positioned very quickly. In 2018, 80% of the world’s transactions were generated by automatic trading. This corresponds to 60% of Wall Street trading. The days when trading was done exclusively manually are therefore long gone.

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Democratization of online trading

This development is particularly noticeable in the area of online trading for private individuals. The latter now have many tools that act in their place. This is particularly the case for “turbo” certificates. ». They allow you to position yourself on the Forex or stock market in a very fast way.. They are also sometimes accessible 24 hours a day. We are also seeing the emergence of trading robots, which allow orders to be processed automatically and market trends to be analysed.

These tools allow a growing number of individuals to learn how to trade, while maintaining a certain degree of caution. In the case of robots, Big Data is used to process data extremely fast: they can thus place several orders per second. The craze is such that they’re going to be soon to be regulated in the United States.

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Analyze market sentiment

Until now, automatic trading options have failed to detect an intangible aspect of finance: market sentiment. This is the personal attitude of investors towards an asset or financial context, which can determine the future of certain investments. But the Big Data has also been there. Solutions now allow to analyze tweets in a massive wayor other means of communication in order to get an idea of the general sentiment of investors.

This makes it possible to build forecasting models that are applied to all markets. In Europe, there are thus indicators of feeling of the euro area, which vary according to trade tensions and geopolitics. This is also true for emerging markets. For example, there are analyses of articles related to cryptomoney, which predict the interest of the general public in the subject.

So the Big Data is taking a key location for financial marketsThe Group’s activities are focused on online trading, particularly for private individuals. Although a real knowledge of the field is still necessary to take advantage of the financial sector, mass data tools remain a real help for the vast majority of traders.

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