Facebook Twitter
Facebook Twitter
Home Blog Page 23

Guide to Trading and Gamification Part 2

By
Market Place
-
0
Forex Traders Chart

Continuing from where we left with the first part, the second part will focus on different examples of online trading and gamification integration and some investor based games to give you a better idea. We have already discussed the advantages of using gamification techniques in online trading and also briefly discussed the point of view of the critics. If you want to know about the details, you can refer to the part 1 of these series.

Gamification became a mainstream trend since 2011, and as predicted by 2015 50% of organisations that manage innovation processes will gamify those processes by 2015. Whether this prediction came true or not, we can deduce from the trading industry that introduced already different investing games.

Now, let us look at the different investing games and tools that could reshape and open doors to endless learning for new traders as well as experienced ones. It is highly recommended to play these trading games at least once or twice to see what the hype is all about. Many multinational companies are also using gamification for educating their employees.

Benefits of Gaming and Gamification

Gamification creates engagement that leads to employee development. The chart below reveals the specific skills that might be developed by employee through gamification.

Source: VenueGen

The employees learn more quickly and have fun doing so. They are able to retain more information as compared to the traditional methods of learning. Research also points out the benefits of using games to eliminate anxiety and depression. Some might go as far as saying that game can produce better results than medicine. All the neuroscientists and researchers on the field agree gaming could increase the retention power and increase concentration levels.

Traders who play trading games can build a strong network which is important and you can get instant feedback and rewards. Gamification offers a lot of potential for business applications. For traders and businesses, gamification offers an easy way to train, monitor and motivate employees. Businesses can engage customers to participate and keep them engaged. Individuals can apply the same things they learn from games in real–life situation, such as anticipation, problem solving skills and creativity. Here are some of the games you can try to polish your understanding of different concepts used in online trading:

Flick a Trade

Start with casual games, such as flick a trade, which is a gesture based trading game for Android and iOS devices. The game allocates different gestures to different commodities currencies and indices. You can play around with virtual currency but you will have to take time into consideration. The graphics will appeal to you and the game play will keep the player engaged. Not only this, but you can also share the fun by challenging your friends in the multiplayer mode. View your performance and share it on social media to show your friends.

World of Tradecraft 

Truly inspired by one of the most popular multiplayer online games, World of Warcraft, this game offers traders and opportunity to experience gamification of higher degree. It is a full-fledged multiplayer online trading game. Similar to World of Warcraft, this game also give you an option to work collaboratively in a team towards a single goal or get involved in one on one competition. As you move higher, new challenges, rewards and territories are unlocked which will push you to play well and play more. New traders will get the experience which could help them in real world trading.

Investing Apps

Some of the best investing game apps that took advantage of gamification are:

Trade Hero

It is one of the best virtual investing apps and works as a financial literacy tool as well. It engages users to improve their trading by using gamification. Users can create a virtual portfolio and compete with one another. You can comment and share you score on social media. The app is free to download but uses the in-app purchase model to earn money. There are many other features you can explore.

Stox

Another app worth mentioning here is Stox. It has a series of small lessons to teach you how to create online trading accounts. You will have to go through quizzes after you have gone through the lessons. Stox focuses on traders who are new to online trading and don’t know much about online trading. Stox app is available for both Android and iOS. Take a look at different indicators and do your technical analysis with a touch of gamification with this app.

These are only a few examples but there are countless others as well. These apps and games can enhance your knowledge about financial markets and improve trading skills which is beneficial for traders in the long run.

Relevant Posts:

Guide to Trading and Gamification – Part 1

The Gamification of Online Trading 

How “Tradimo Play” ApS integrates Gamification and Trading

- Advertisement -

Satoshi Nakamoto and the Inception of Bitcoins Part 1

By
Market Place
-
0
Bitcoin and criptocurrency

Innovation and inventions has been a driver for advancement in technology from the early days. The world remembers the people who make a breakthrough in any field that could prove to be helpful for the whole society. History is filled with inventors who have dedicated their entire life to a goal that they are able to achieve finally. Today, we will shed some light on one such innovator who made an impact on business and trading.

Background

As we entered into the 21st century, the internet turned into a necessity from being a luxury. Initially, no one thought it could bring about a significant change in many different fields. As time passed, many applications started to trickle in and some of them created an impact in different fields. The internet gained popularity among the masses. After this, businesses also started to take it more seriously. The internet penetrated every field you can think of and now it has become an integral part of several different industries.

The impact of the internet can be seen everywhere, from healthcare to business, sports to entertainment. When you talk about the business world, paper currency was replaced by credit and debit cards but many security issues created doubts in the mind of users. Even today, many people are still reluctant to share their credit card details online. Although online payment security has improved significantly, there still are security breaches being reported.

This created a vacuum and the need for a universal online payment solution that could ensure secure transactions online. This gave rise to the concept of digital currency. Many researchers and scientists put in their effort to develop a solution that could facilitate users who want to buy things online. This need was further fueled by the popularity of E-commerce. Finally, the wait came to an end when Bitcoins were developed.

Satoshi Nakamoto

The credit for developing the first crypto-currency commonly, known as Bitcoins, goes to Satoshi Nakamoto. A 64-year old Japanese by origin who lives in California, USA, in a strange turn of events, he was denied credit for being the creator of Bitcoins and hired a lawyer to ensure he received the criedt. Basically, Nakamoto developed the Bitcoin protocol in 2008 and then went on to launch Bitcoin software client in 2009. He also published a paper to support his Bitcoin protocol in 2008.

There is not much information about him known publicly because he used to be reserved and doesn’t discuss  his personal life with anyone. He worked on other projects with open source teams. His future plans are to explore the different domains and sideline himself from the digital currency business. He developed the algorithm that changed the world of business and money forever. There are many misconceptions about his personality and many people have made many false claims about him.

Other People Involved

It is still unclear that whether Santoshi developed Bitcoins or some other person deserves the crown. Some of the names that are taken in this regard are Michael Clear, Martii Malmi, Jed McCeleb, Michael Weber, Hal Finney, Nick Szabo and many more have been named in place of Satoshi as the founder of the first digital currency known as Bitcoins.

Michael Clear, a cryptography graduate has denied any such claims publicly. Joshua Davis, New Yorker journalist has made this prediction about Michael Clear after analyzing Nakamoto’s writings. Martii Malmi has been involved with cryptocurrency from the early days which made some people vote in his favor. Jed McCeleb, cofounder of Rapple and founder of Mt Gox, was also been given preference over Satoshi Nakamoto.

According to another popular belief which tilts the scale in the favor of a computer scientist by the name of Donal O’Mahony purely based on a paper he published on Digital Payments. In May 2013, Ted Nelson, who is an internet veteran named Professor Shinchi Mochizuki, but he also admitted there is not much evidence to prove him as the main person behind Bitcoins. Who really is the founder of Bitcoins is still a mystery that needs to be solved. Irrespective of the creator, the innovation has certainly made a huge impact on ecommerce, in fact any business which operates online regardless of industry.

- Advertisement -

Guide to Trading and Gamification Part 1

By
Market Place
-
0

The trend of integrating two completely different fields to find a comprehensive solution to a problem is becoming commonplace. Scientists and researchers have experimented with it and have received positive results. Now, they are taking it to the next level. It might look odd to some of us but gamification and online trading integration is on its way.

In one of our recent posts, we reviewed the current trends of gamification in online trading and how it affects traders’ experience. 

Gamification

Gamification is a technique which applies game elements and mechanics on real-world situations. This emerging field has been able to capture the attention of many businesses because it produces the desired results for your business in less time by engaging your targeted audience to participate. Gamification is also used in many other fields with varied success rates.

Online Trading

The trading of securities online has become the norm after wider adoption and acceptance of internet. The popularity of online trading is on the rise as suggested by statistics and the trend is going to continue in the same fashion. Many new traders are also entering the market regularly after seeing the success their counterparts are enjoying in the field.

Integration

Efforts are underway and some positive results have also been achieved which will further speed up the process of gamification of online trading. Most traders who are experienced hang out in chat rooms and forums to keep themselves updated but they neglect the booming platform of social media. New traders, who want up to date information but do not know where to look for it and lack the required knowledge to succeed in online trading, will find this useful.

Using game elements or developing tools and technologies that could help online traders in their quest to success can play a crucial role. Social media can be involved to make things easier by sharing the latest news and articles to help investors make the right decisions. There should be a review and ratings method followed to rate forums which makes it easier for traders to select the best forum to get the knowledge.

Some people are in favor of gamification of online trading while others criticize it by saying there is a huge difference between real world and virtual situations. A real world loss could cost you money but a virtual loss would not hurt you that much. Irrespective of what both parties say, gamifying online trading has turned into a more engaging and enjoyable experience.

Many trading services, such as eToro, have experimented with social media and game elements. The flexibility to experiment in the game and learning different things without putting your hard-earned money at stake is the biggest advantage gamification of online trading can give to traders. Using virtual funds in games will help you learn and experiment with different things that could prove to be handy when you trade with real money.

Many people who don’t like games only look at one side of the picture to shape their opinion. They only focus on health issues and other problems associated with gaming and completely neglect the positive side of gaming. You can learn a lot regarding stock investing. There is even a social platform called Cloud Stock where you can test your investing skills while at the same time competing with friends. Recommend stock to your friends. Invest with your friends and see who can earn a better return.

If used properly, gamification can be used as an educating tool to teach new investors the tricks that could make them more capable of doing well when making investments in the real world.

Another common mistake made by traders who are new to this field is to follow the footsteps of famous traders who are earning more profits. This might or might not be fruitful for new traders because it purely depends on the situation.  This problem is solved by using gamified investor tools which can help young investors to check whether a strategy would work for them in particular situations or not without risking their money.

Now, you can easily get access to relevant material to get the help you need but you must know where to look for it.

 

Relevant Posts:

The Gamification of Online Trading 

How “Tradimo Play” ApS integrates Gamification and Trading

- Advertisement -

The Best Price Action Trading Strategies

By
Market Place
-
0

Business trading is not simple anymore. You must have in-depth knowledge of hundreds of factors that could play a vital role in bringing about a change. Businesses invest time and effort to make a strategy that could help them in achieving their goals. They pay hefty amounts to business experts to help them do that and guide them about the future.

What is Price Action Trading?

In one of our recent posts, we provide detailed introduction to price-action trading strategy. Price action trading is a method by which you can analyze a few factors before making the decision and neglecting other factors. You look at a couple of indicators and trends in price action trading. Price action trading is mainly focused on the data of movement of price and the time it takes for the price movement. This data is indicated on a price chart. It shows the actions of humans and machines that are involved in trading market.

When these actions are viewed with respect to time, they become price action that it also presents in price charts. The biggest drawback of price action trading is it neglects global events which could have a positive or negative impact on the price. But the advantage is that you can trade successfully without considering global events and other factors using price action trading.

The main reason is that all the global events changes and economic data is indicated through price action on a price chart. Price action shows a glimpse of all elements that are influencing the market with respect to time using different indicators such as MACD and RSI. You must only focus on price movements and you can easily conduct profitable trading business.

Forex Trading and Price Action Trading

You will have to learn what the patterns in the market is saying and then do Forex trading. The price action may repeat itself because the same participants interact in the same way with the system. Many price trading strategies are used in different ways. Price action reflects change or continuation of market situations and opinion. Analyze the original price and leave out all other indicators out of your charts in Forex trading. Economic and currency data do influence the price in Forex trading.

Price Action Trading Strategies

There are many price action trading strategies out there. Some of them are as follows:

Fakey Trading Strategy

Fakey trading strategy is a commonly used price trading strategy and highlights the neglect of an important level within the trading market. The pattern consists of inside bar, false break of inside bar and close back inside the range in the same order as mentioned here. The entry is done when the price moves. The entry is recorded when the price moves higher than the level of inside bar. Another variation of Fakey trading strategy is bearish Fakey. The only difference is that the entry is recorded when price moves lower than the inside bar in bearish Fakey.

Inside Bar Strategy

Inside bars are completely contained within the boundaries of a previous bar. It can show a brief consolidation and start to move in the trend direction which is dominating the market. Analyzing inside bars on a daily and weekly basis can be more fruitful. There is a large reward and small risk at stake in this strategy and this is why most traders love this price action strategy.

Swing Trading Strategy

Swing trading holds middle ground between buy and hold traders or day traders. Basically, swing trading is a moderate method and focused on market trends and momentum. It gives you the chance to pocket larger profits than other trading strategies. Many traders won’t like to use swing trading strategy because they want frequent trade signals which swing trading don’t provide.

You don’t have to put in a lot of effort to be successful in swing trading. You just have to do a market analysis on a daily basis or if you want to keep yourself updated you can do it twice a day. Closing price of the day is of great importance for swing traders. When a trade signal reaches swing traders, they can set their trade order by inputting stop and target price and entry and do their business.

- Advertisement -

How to Measure Money Flow with Different Indexes

By
Market Place
-
0

Businessmen need to take hundreds of factors into account before they can make business decisions. Missing out a significant factor from the analysis could prove to be devastating because the same factor you have neglected could make the biggest impact in changing the whole scenario. You will have to take every step by looking at the indicators or otherwise you will get into trouble. Some of the most common indicators used to measure money flow are as follows:

Money Flow Index

Money flow index takes both price and volume into account. In MFI, money flow is positive when buying pressure rises and is on the negative side when selling pressure falls. The ratio of negative to positive value is calculated with respect to time period, i.e. on a yearly basis, using a formula. The money flow index ranges from 0 to 100. MFI is more efficient when it comes to finding out about price boundaries and identifying sudden trend changes and opposite price movements.

Money flow is positive when typical price rises from one period to the next period and it is negative when typical price comes down from one period to another. The money flow index is treated in the same way as RSI. Volume sets both of them apart. The MFI leads prices and with addition of volume, lead time increases. Analysts can easily view the overbought and oversold levels to tell you price boundaries and high and low trends can be used to predict reversals. An MFI value higher than 80 is considered overbought and MFI value below 20 is considered oversold.

You should not rely on MFI as a sole indicator and make decisions based only on the results MFI gives you. It is highly recommended you take multiple indicators into account and use a hybrid approach than only relying on any one indicator. Looking at the situation from different perspective (indicators) will put you in a better position to make the right decision especially when it is about your business and money.

Relative Strength Index

Another momentum metrics used to measure the fluctuations in price movements and speed at which it changes. Similar to MFI, RSI also has the range from 0 to 100. A value higher than 70 is taken as overbought and a value below 30 is considered oversold. RSI are best if you want to know about the general trend in the market. It uses similar techniques to exponential moving averages to calculate the value. The accuracy of value increases over a longer period of time.

The default period value is 14 but it can be increased to decrease sensitivity or brought down to boost sensitivity. The overbought and oversold criteria can also be readjusted by looking at the analytical requirements. Divergence could mislead you if you are looking at the strong trend. Failure swings accurately predicts imminent reversal and are independent of price action. It takes signals from RSI and doesn’t take divergence into consideration.

On Balance Volume

On balance volume treats buying and selling pressures cumulatively unlike other indicators which consider them independently. It includes volume on up days and excludes volume on down days. It is one of the oldest indicators used for measuring positive and negative volume flow. Want to confirm price trends or want to predict price movements? Use on balance volume for such situations. The value of OBV increases when volume on up days surpasses volume on down days. The value decreases when volume on down days is higher than that on up days.

Increasing value of OBV indicates positive volume pressure that results in higher prices. Declining value of OBV shows negative volume pressure that can result in lower prices. You must pay more attention to characteristics of OBV line. OBV value is normally based on closing prices. Analyze closing prices when finding support or resistance breaks or divergences. Rise in volume will also cause an extreme move which will take some time to settle and come back to normal.

The bottom-line is that most indicators work well in specific situations, so it is better to use a combination of these indicators to make the right decisions.

- Advertisement -

How ‘Tradimo Play’ ApS Integrates Gamification and Trading

By
Market Place
-
0
Forex Traders Chart

“Games are the new normal” Al Gore

Many companies are now focusing their attention on developing useful applications by integrating two or more fields. Combining the concepts of multiple fields to solve a common problem has become quite common in this day and age. The companies who experimented with this formula have also attained success and that has inspired other companies to follow suit. This might look odd to many but it is effective and has proven its worth by providing brilliant solutions to complex problems.

Tradimo Play ApS

The latest experiments in the series of events are being done to fuse gamification with trading. A new company known as Tradimo Play ApS has developed gamification tools to take trading to the ever expanding gaming community and to anyone who wants to learn trading concepts. Tradimo Play ApS has also tried to cater to the people who prefer mobile devices by launching its mobile app for popular mobile platforms which has managed to gain the attention of major brokers and traders.

The company has diverted all its energy towards bringing something new to the market and has succeeded in doing so in the form of its latest gamification tools. Innovation and creativity is what they are striving and wants to give something unique and refreshing to their clients which is the right way to go especially in today’s competitive world.

Gamification

Gamification is thinking and applying game elements in non-gaming environment to solve major problems. The main purpose of gamification is to ensure user participation and it has succeeded in achieving that goal. It is used in many different fields, from education to entertainment. It is focused on main players and how they act in a game situation. A concept of reward is also there to motivate the player in achieving their goals.

Internet as a Medium

People who like to trade frequently are still using chat rooms and other instant messaging platforms to stay up to date with the latest happenings and indulging in discussion of hot topics. While the brokers have extended their reach and increased their customer base, many new traders are still not familiar with investments and stocks.

Online Trading and Gamification

Online trading has started to look more or less like role-playing games if you analyze closely. You will have to make decisions that could bring about a change, for example losses and savings. The popularity of online trading will grow in the years to come which will give an opportunity to companies like Tradimo Play ApS to develop gamification tools and capture a large market share with their handy tools for trading.
Social media has helped traders in interacting with the stock markets in a more reserved way. Times have changed and now you don’t need exclusive access to read experts opinion and predictions. Many traders believe articles posted on social networking sites such as Facebook and Twitter influence business and the trading decisions they take today.

Some might not agree with the idea of integrating real world with virtual world, especially when your money is at stake. They argue that in-game situations won’t match with real-world situations and both are completely different. A loss in the game would not hurt you but a loss in business and trading will hurt you bad because you will lose your hard-earned money in the process.

Trading decisions are still made on the basis of trade signals and not only on the articles which traders read on social media. Frequent traders know where to look when it comes to finding the latest news and to know more about trends but it might be a problem for new or part-time traders. Gamification elements could come in handy in rating forums for authenticity and credibility so that part-time traders could easily select the right trading forum to learn what is happening in the world of trading.

Social media has sped up the gamification process of the online trading market. It will take time but gamification and online trading together does have a bright future and could benefit many traders. Proper execution using the tools could even turn critics into supporters. People would be slow to react initially but with the passage of time things are bound to change.

- Advertisement -

Find a Bitcoin ATM near You

By
Market Place
-
0

Technology has brought about a big change in many different fields and business is no exception to that. It started when paper money was replaced by credit and debit cards. Now, we have more than a dozen varieties of digital currencies at our disposal. Although they may have to overcome many issues before they can replace traditional money, they have made already a huge impact.

Bitcoins

Among many different currencies, Bitcoins is the most popular and is already being used in some places. It is also traded. It is a form of electronic money that is supported by a software-based payment system. There is no central regulatory authority and the system works on peer to peer basis. It is the first crypto currency that is fully implemented. It uses strong cryptographic techniques to secure the transactions but still it had to face some security issues in the past.

Bitcoins are stored on a computer system and this process is known as mining. Users can trade bitcoins to purchase a product or service, and even exchange it for real money. Sending and receiving Bitcoins has not been an issue for some time but you will have to pay a fee for that. The rates of Bitcoins fluctuate regularly and are made known publicly. The transactions are recorded in a ledger known as block chain. It is also distributed pubicly to authenticate ownership.

Mining

Mining is a process to store Bitcoins and keep the records of the transaction. Another duty of miners is to keep the block chain consistent and complete. They have to record every new transaction made and combine similar ones to form a block. Information in the new block is used to connect the new block with older blocks. SHA-256 cryptography is used by Bitcoins of the previous blocks.

Miners who are able to find the next block successfully are rewarded with a transactional fee and newly created Bitcoins. A special transaction needs to be made to receive the reward, which is known as Coinbase. These Coinbase transactions play an important role in tracking all the Bitcoins in circulation at any given time.

Bitcoin ATM

Similar to paper currency, Bitcoins can also be withdrawn through ATMs but they are specialized ones and different from normal ATMs. Basically, it is an electronic device which helps you to conduct a transaction using Bitcoins without the need for any human involvement. Some Bitcoins ATMs also offer the facility to purchase Bitcoins by paying cash.

It is a recent phenomenon with the first Bitcoin ATM starting operation late last year in Vancouver, Canada. Since then, many Bitcoin ATMs have stated to crop up in different parts of the world. The Number of Bitcoin ATMs is still quite low and you will have to see a map to find one. The map which shows Bitcoin ATMs is known as Bitcoin maps.

Laws Governing Bitcoin ATM

These machines operate under different laws. There are different laws applicable in different countries regarding the operations of Bitcoin ATM. Laws are still in its development stage in many countries but they are fully implemented in a few countries, such as the US. Different bodies responsible for regulating and monitoring money are responsible to make the laws regarding Bitcoin ATM which can be implemented regularly.

Future

The popularity of Bitcoins cannot be denied but some issues, such as security issues and no regulatory authority to monitor and manage the digital currency are some of the biggest hurdles in its growth as the future of business. Bitcoin ATMs can take cross border e-commerce to the next level and it has the potential to do that

It could prove to be helpful for those who want to shop online but don’t have a bank account or credit card to make payments. They could use Bitcoins to make payments anywhere in the world because it is accepted everywhere. Travelers who visit different countries will not have to face any issues regarding converting currencies.

They will not need a bank account or credit card for that matter. If they have some cash to spare, they can also convert it into Bitcoins. There are many other uses of Bitcoin ATM but before it could control and find a solution to security and other issues that plagues Bitcoins, things mentioned above could not become a reality.

- Advertisement -

How Artificial Intelligence affects financial market

By
Market Place
-
0
Financial Analytics

 

The dawn of the 21st century has brought many novelties with it, Robo Advisor among them. Today, financial markets are not just monitored by humans. They are also flooded with artificial intelligence. Artificial Intelligence, or AI, is the new theme for covering desired financial aspects of the market. A human mind has shortcomings as it cannot remember large portfolios and databases simultaneously. A Robo Advisor, however, is a different story.

The first version, known as the Robo-1, was more like a preliminary assistant, encompassing basic financial matters conducted by the client. However, Robo-2 is a different story. Robo-1 was more of a technical demonstration model of the basic user-friendly interface with basic financial assessment functions.

The Robo Advisor 2 is a quantum leap over the original model. The IBM Watson is the new name of the artificially intelligent financial assistant. Watson is programmed with the human cognition in mind. The model has the capacity of understanding financial databases and daily requirement-based model assessments to facilitate the client regarding what activity is deemed probable.

As a learning CPU, Watson can read, learn and talk and has the assisted memory to learn with experience. A true model of state of the art technologies, Watson can present an argument, reason and present a case based on the financial history of a client. In other words, if you are going off the mark, Watson can give you reasons not to do so.

Human Interaction Not Needed Anymore

As an intelligent cognitive design, Robo Advisor 2 can assist the client in making decisions, analyzing the market, what to purchase and what not to, Robo Advisor can help. In fact, the model encompasses the capability of becoming your online financial portfolio of choice in years to come. Watson is designed with these fundamental aspects on purpose, since the aim is to provide the easiest financial advice possible. The user can feed login details and Robo Advisor can log in as the user, analyze the market, see the financial portfolios and predictions and execute the orders for profitable trades.

Evolution Instead of Revolution

Despite advancements, the Robo Advisor is far from perfect. It may serve best as a financial assistant but not as a financial legal advisor. Not only does it lack the capability to look into legal documents, it also lacks a basic understanding of executing legal barricades as it is not an authorized entity to sign documents.

Even if it does, several websites have secure codes to fill, something the Advisor cannot do, which leaves the legal aspect out of its reach. It is a quantum leap over the basic model, so much so that it is 2 to 3 times more efficient in every aspect. However, the Robo-Advisor 2 is more of an evolutionary design which needs improvements and additional functionality.

- Advertisement -

What Is Money Flow Index (MFI)?

By
Market Place
-
0
Dollar, USD and American Market

When you are performing a technical analysis, you need to focus on various indicators and what they say. Closely analyze the indicators and the bigger picture will be in front of you. Same is the case with the asset trading business. There are many indicators you must consider when trading securities and one of those indicators is the Money Flow Index (MFI).

Money Flow Index

The money flow index is an indicator which shows the strength of money flowing in and out of asset trading. It is interlinked with RSI (Relative Strength Index). The main difference between the two is that RSI only considers prices while money flow index (MFI) takes both price and volume into account. Its range is from 0 to 100.

All the bars whose average price is more than or less than the previous bar are considered while calculating the MFI. Index values are used to plot the money flow. The price and volume nature gives more in-depth information from different angles which could help in determining the progress towards your goal. The money flow index can show lot of fluctuation and highlights overbuying and overselling in an effective way.

Overbought and Oversold

On a scale from 0 to 100, a value of 20 or less is considered oversold and a value of 80 or above is considered overbought. This is also known as accumulation and distribution. It is used to indicate the momentum and direction of the market. You will have to add the distribution and accumulation values of all the trading days and divide it by the number of days you want to find MFI of.

Calculations

Firstly, determine the actual price by using the following formula:

Price = (High + Low + Close)/3

Next, calculate the money flow by following formula:

Raw money flow = Price × Volume

Specify the number of days you are trying to find the money flow for. For example, you want to find money flow for 20 days. Now, it is time to calculate the ratio of money flow by using the following formula:

Money flow ratio = (20 days’ accumulation)/(20 days’ distribution)

Accumulation and distribution can also be replaced with positive and negative money flow respectively in the above formula.

The final step is to find the money flow index. The formula to find the money flow index is:

Money Flow Index = 100 – [100 / (1+Money flow ratio)]

Many traders are looking to take advantage of opportunity when price and money flow index move in opposite directions. This brings about a significant change in the market. Divergence of these two factors, price and money flow index, can be beneficial or can also be disastrous depending on the situation you are in. It is a little risky but if you consider some other factors then you will end up on the safe side.

Other Factors

It would be much better for you if you consider factors other than price and volume because you will be able to see the bigger picture and can easily make the right decision. If there are large gaps in price action, then there is some problem because calculation of money flow is done by taking mid-points of price action into account. If there is a large gap, then it means some mid-points are missing and the complete calculation becomes suspicious and ambiguous.

If the mid-points are missing, the results will be disturbed. It is highly recommended to verify your results through other indicators and don’t depend only on price and money flow. You can also check out exponential moving averages and moving average convergence and divergence which are more accurate as compared to money flow index indicator.

It can give early warning signs for a changing currency trend so you can be prepared beforehand to tackle such issues and save yourself from losses. The STC indicator can also be used but it was primarily developed for the currency trading. The STC indicator reduces the risk of false signals significantly. With computers at your disposal, you can quickly judge the accuracy and reliability of prices thanks to trading software. Be aware of the latest indicators because they might be more efficient as compared to older methods.

- Advertisement -

Price-Action Trading Strategy

By
Market Place
-
0
Stocks Chart

To succeed in today’s trading world, you need to be aware of what is going on the market so you can accurately predict what could happen in future. Your biggest chance of survival and making it big in the industry is to know and do things according to a plan or a strategy. This will make it easier for you to achieve your goals.

Price Action Trading

Price action refers to the fluctuation in prices, either high or low. It is analyzed by considering the price changes that have occurred in the recent past. This gives an overview of the market to the trader and what he could expect in days to come. The trader can also make short-term decisions based on this analysis. It depends on technical analysis tools instead of looking at other indicators.

Price bands, price swings (high or low), trend lines, charts, break outs, etc are the technical tools which can be used to analyze the price action. Each trader has his own method to interpret the information they receive. Behavior and psychological aspects also play a crucial role in the decisions made by the traders. For example, if a market is showing a positive trend for a week, traders believe it will continue to do so in the future, which is always not the case.

Uses

Price action trading is mostly used to speculate and predict future trend and price movements. It is mostly used by speculators, retail traders and trading firms. It is used in many types of trading, such as Forex trading, bond, equity, and commodity trading. Traders recognize trading patterns using price action trading and keep an eye on stop losses and entry and exit levels among other indicators.

Strategies

Using a single strategy on a stock will restrict your trading opportunities. Use a combination of strategies to be more effective when trading. The first thing you need to do is to identify the situation when things go high or low, break outs occur etc. Next, analyze the scenario and identify trading opportunities such as when it is more feasible to trade? When the market will go up or down? Trading opportunities vary from trader to trader. It is a highly volatile market so you need to be alert to be successful and keep an eye on trends and what experts say.

Make a strategy by considering different factors which influence the price shifts and your trading goals. Action trading analysis and price analysis is done through tools but the decision has to be taken by the trader after closely assessing and studying the results of the price action analysis. Price action trading strategies works well for short to medium-term investments. It is not that effective when it comes to long-term investments.

Advantages of Price Action Strategy

The trading markets follow a random pattern which may be hard to predict but if you keep an eye on various factors which influences price changes, you can speculate what will be the future of the market. A price action trading strategy offers traders the liberty to choose a strategy that suits their needs best. As mentioned before, action trading strategies can be applied on different kinds of trading, such as bonds, equity, commodities and Forex.

The biggest advantage of price action trading is that it gives control and power to the trader so he can decide according which set of rules would be better suited for them instead of following rigid rules. You can easily use a price action trading strategy through trading software. A software gives you charts, graphs and uses other tools to present data in an organized way so you can make a plan or a strategy to achieve your goal. Using the right combination of strategies can lead you to success. You can also test your price action strategy before you apply it, which is an added advantage.

You can apply the same strategy you have chosen on past data and see the results before applying it in future trading. Decide on a strategy after analyzing your requirements carefully. You can also set limits within which you can sustain the price fluctuations of stocks. Many traders support price action trading strategies for their advantages.

- Advertisement -

Pros and Cons of High Frequency Trading

By
Market Place
-
0

Norway’s $860 billion sovereign wealth fund — the world’s largest — has decided to abandon algorithm-based High Frequency Trading (HFT). The electronic “trail” left by such trading allows traders elsewhere to profit on the HFT orders placed by the fund. But the decision comes at a very tumultuous time for HFT trading: Although the majority of stock market trade volume is by way of HFT, regulators continue to cry “foul” when HFT abuse crosses the line into market fraud.

The Emergence of HFT Stocks

HFTs have become controversial in large part due to the fact that they now account for at least 50 percent of all trades transacted by traders in United States equity markets — although in 2011, that figure was widely quoted as being as high as 70 percent. But it is not just the percentage of volume that has sparked debate over its implementation but also whether it places conventional, institutional investors at a distinct disadvantage. In addition, the technology has given rise to a category of stocks known as “HFT stocks” that are favored by HFT traders. These easily traded, highly liquid stocks in large companies put long-term investors at a disadvantage if they do not employ the fastest trading media utilizing the latest, most aggressive algorithms.

The Liquidity Debate

Defenders of HFT point out that it lends greater liquidity to the market. However, opponents cite instances of large orders being placed only to be immediately canceled, creating nothing more than “phantom liquidity.” The SEC recently investigated a New York HFT firm for the manipulative practice of placing rapid-fire, aggressive  trades in the last two seconds of almost every trading day during a six-month period from June through December 2009 that resulted in the manipulation of closing prices of thousands of NASDAQ-listed stocks. The tactic overwhelmed the market’s available liquidity and artificially pushed the closing price in the firm’s favor.

Crossing the Line

Although the defendant firm was relatively small in size, it dominated the market in the last few seconds of a trading day for stocks that it otherwise traded only minimally. During the period investigated by the SEC, the firm’s trades constituted more than 70 percent of the total trading volume of the stocks it manipulated. A statement released by SEC Chair Mary Jo White cautioned: “When high frequency traders cross the line and engage in fraud we will pursue them as we do with anyone who manipulates the markets.”

The condemnation of HFT abuse was echoed by Andrew J. Ceresney, director of the SEC’s Division of Enforcement:

“Traders today can certainly use complex algorithms and take advantage of cutting-edge technology, but what happened here was fraud.”

- Advertisement -

Why Self-Directed IRAs May Be Your Key to a Comfortable Retirement

By
Market Place
-
0
New York, business center at night

With the average person working well over 40 to 50 years in their life, they set aside a small amount of funds for their retirement. To ensure a better retirement, many individuals place their savings into retirement funds, allowing them to gain profit on the savings they make and thus enjoy a better retirement.

A self-directed Individual Retirement Arrangement (IRA) is one of the many arrangements people make for their retirement. It allows them to have greater control over their retirement fund, allowing them to shape their retirement as they will. Here is a closer look at self-directed IRAs and why they may be your key to a better, safer and comfortable retirement:

Benefits

Gain Greater Control over Your Future

As the name suggests, possibly the biggest benefit of self-directed IRAs is the account owner can direct their funds into any securities they want. As a result, they gain greater control over their risk, returns and, evidently, their future. This helps them choose securities and investments they know about, thus providing a host of benefits, such as greater return and control.

They Offer Greater Returns on Savings

Unlike regular retirement funds, where the account manager has control over the investments, self-directed IRAs give the owner greater control of them. As a result, they can expand or shrink their account’s investment portfolio. By doing so – directing greater investment in certain securities – account owners can acquire greater returns on their savings.

They Diversify Your Investments

With the ability to direct your retirement fund into a specific or broad range of securities, self-directed IRA owners can diversify their investments and thus hedge their risks against poor performing securities or market problems. As a result, their retirement fund continues to grow, even if a security underperforms.

Limitations

It’s as Risky as It Is Beneficial

While they may provide greater profitability, self-directed IRAs still follow a major underlying financial principle: the greater the risk, the greater the return. As such, while it does give the account owner the ability to earn greater returns on their savings, it also opens him up to greater risk and thus greater loss.

Your Investments Doesn’t Allow Ownership

While they may be highly beneficial, they do not allow you to own a company, home or certain other securities. For example, if an owner directs a significant portion of their funds into a small company, they cannot own it through the IRA.

It’s Not for Everyone

In truth, a self-directed IRA is not for everyone. If you do not have the expertise to choose securities, it is better you stay away. Moreover, certain prohibited transactions are prohibited by the IRS – make sure you do not plan to invest in them before acquiring a self-directed IRA.

They allow you to hedge your risk, improve your returns and/or allow you to better shape your retirement. As such, self-directed IRAs can be one of the best choices you make for your retirement, provided you know what you are directing your investments into.

- Advertisement -

Coindesk – A Platform for Bitcoins and Crypto Currencies

By
Market Place
-
0
Bitcoin and criptocurrency

Introduction to Crypto-currency

From shopping to entertainment, the internet has brought about a revolution in many industries. Now, it is setting its sight on taking the payment system digital. This has given rise to Bitcoins and other crypto currencies.

Crypto currency, as the name suggests, uses cryptographic techniques and methods to secure transactions. A mutually trustworthy party manages the integrity of a crypto currency. The rates are set and known to everyone. Crypto-currency puts a cap on production of the currency to maintain a balance in the market. Some of the best examples of crypto currencies are Namecoin, Litecoin, Peercoin, Ripple and Masterxcoin.

Bitcoins is one of the most popular crypto-currency so far.

Bitcoins is a form of a digital currency that is stored on a computer system and traded online. Bitcoins was developed by Satoshi Nakamoto in 2009. It does not have a central regulatory body to monitor and is based on a peer to peer model. It is the first crypto currency and many other crypto currencies have followed its model. One major issue with Bitcoins is highly fluctuating price and distrust on its authenticity and security.

Processing and storing bitcoins in computer system is called mining which is a reward for individual or a business because they charge a fee for that. You can buy bitcoins from exchange by paying real world money. Sending and receiving bitcoins is also not an issue anymore but you will have to pay a transaction fee for that. The fees are lower as compared to credit card fee which has attracted the interest of merchants towards Bitcoins.

CoinDesk

The need for a unified system still remains to be fulfilled to manage Bitcoins and other forms of digital currencies. CoinDesk tried to take care of this need and offered a platform for newcomers and experts in the field to know about the latest news related to crypto currencies and digital money. The site started operating in May 2013 and took it to the next level when Jon Matonis joined the team of CoinDesk as an editor in September 2013. Jon Matonis was a former executive director of the Bitcoin Foundation and has the right skills and experience in the industry.

CoinDesk is one of the best websites if you are new to the field of digital currency or want to know about the latest happenings in the Bitcoin industry. With the increase in popularity of mobile devices, CoinDesk also took an initiative and released its iOS app in April 2014. The app gives you access to all the top stories and news related to digital currencies. It also has a Bitcoin Price Index so that you can access all the important information about crypto currencies on the go.

CoinDesk Price Index

There are many exchanges for Bitcoins and the rates may differ slightly. To standardize things, a Bitcoin price index has been developed by CoinDesk. The CoinDesk Bitcoin price index is the average of Bitcoin prices of Bitcoin exchanges. Set up in September 2013, many new exchanges have been added while some removed since then due to a number of factors. For instance, Mt.Gox was added to the price index later due to decreasing risk premium and to add new deposit and withdrawal methods. Unfortunately, it was removed because it failed to meet the standards of inclusion in the index in February 2014.

A new exchange called Bitfinex was added to the index to take the number of exchanges to three due to its good performance in Bitcoins trading. Some of the popular publications, such as New York Times, BBC, and Reuters, also publish Bitcoins Price Index in their publications. There are a few conditions exchanges have to fulfill before they can be considered for inclusion in the CoinDesk Price Index.

For example, the minimum trade size should be worth at least $1500, the daily trading level must touch the level set by CoinDesk, the exchange should be operating internationally, and must be large enough to be counted as at least 2% of the total market. Otherwise, the exchange will not be considered for listing on the Coindesk index. This applies to any and all exchanges for Bitcoins and other crypto currencies.

 

Related Posts:

The Rise of Bitcoin

The Bitcoin Price History So Far

Explaining Bitcoin Charts

What is Bitcoin Exchange?

Best Bitcoin Trading Platforms

How Bitcoin Prices Affect Exchange Volumes

How to Trade Bitcoin

What a Trader should know about Bitcoin

How to hedge against Risk when Investing in Bitcoin

Top Bitcoin Start-Ups

Top Bitcoin Exchanges

 

- Advertisement -

Anyone can trade and profit from binary

By
Market Place
-
0

The Full Binary Options Trading Guide</a> <p>Anyone can trade and profit from binary options trading, regardless of experience or prior knowledge. However, as a trader you will be even more successful if you arm yourself with the right knowledge and tools – that’s why anyoption created the “Zero to Hero” binary options trading guide. The “Zero to Hero” guide is designed to take you step by step from a complete beginner to an expert, pro trader. In our anyoption Zero to Hero guide you will learn not only the fundamentals of options trading, but also advanced trading techniques and pro tips

- Advertisement -

Could FINRA Finally Help Finance Companies Market On Social Media?

By
Market Place
-
0
What Makes an Elite Trader

Businesses that offer financial services to its customers have long been trying to dominate the social media channel. With a gargantuan-sized audience, finance companies are trying to connect with their customers more than ever and on a more personal level. However, without the help and/or approval of the Financial Industry Regulatory Authority (FINRA), they will not get far.

But with all the efforts FINRA has publicized, could they be the answer to simplifying social media marketing for finance companies, or complicate them? This article takes a look at FINRA’s efforts in the field for well over a decade and a half, and how it is translating for finance companies.

FINRA Can’t Regulate Loose Rules

While FINRA has provided a substantial amount of regulations and rules to companies offering financial services, the problem is many of these rules can be bypassed relatively easily. For example, when a social media ad is posted, aimed at promoting a service, finance companies are required to state a warning for it. However, this warning can be written or integrated in a picture, often small. As such, regulating loose rules can be rather difficult.

As such, while FINRA can help finance companies market their services better, they will need to overcome regulatory problems in order to do so, and that may not happen within the next 5 years.

Creativity and Personalization May Not Be Possible

For social media to thrive, a company needs to personalize its posts in order to both cater to its customers’ needs and preferences, and stand out from its competition. However, finance companies are rather limited on the posts they or their agents can make, often relying on pre-approved messages. This not only inhibits creativity but limits the messages they can send. By putting proper guidelines into place, FINRA will be able to enable more personalized messages to be created, allowing finance companies to be creative with their messages.

Measuring Your ROI – Still As Complex As Ever

For numerous departments, such as marketing and especially human resources, measuring ROI is not as simple as it may seem. When it comes to social media, measuring your ROI becomes a rather difficult task. Identifying the base factor, likes, comments, shares, and direct messages leading to purchases, can be simple but using them to identify ROI is difficult. With many finance companies worrying about current regulatory and compliance issues, real challenges may be overshadowed by a mediocre one. However, if FINRA does well in putting transparent rules in place quickly, it may shed light on ROI methods.

FINRA has been working tirelessly to help finance companies market their services better on social media channels. Unfortunately, their momentum is rather low and it seems they may not make much headway soon. However, once they do, FINRA could help improve the future of social media marketing for finance companies. Until then, it seems FINRA will not be able to do much for these companies.

- Advertisement -

Top Innovative Investment and Trade Platforms: Pros and Cons

By
Market Place
-
0
Forex Traders Chart

When you talk about investment and trade platforms, it is important to do a comparison in terms of each vendor’s advantages and disadvantages. A good trading platform serves as a pinnacle for maintaining and balancing your trading portfolio, not to mention it also aids you in keeping your funds reinvested, offering services at reduced prices. This is especially important to consider if you have your holdings divided in various brokerages and accounts. The famous John Bogle once said,

“When there are multiple solutions to a problem, choose the simplest one.”

Managing your investment and trading portfolio using a computer is just not simple, but it’s smart as well and it can potentially increase your investment returns. Mentioned below are four of the best trading platforms with their respective pros and cons to help you decide which one(s) you should choose. So, here goes a summary of the best platforms with the details presented further below:

 

Vanguard

Pros

  • Amazingly reduced fee index ETFs along with mutual funds that don’t include a commission fee
  • Provides the benefit of automatically reinvesting your dividends
  • Useful online trading tools that can help you analyze and evaluate your entire trade portfolio which also includes external accounts as opposed to the broad market

Cons

  • User interface is not so user-friendly and might end up feeling bulky
  • Takes too long to transfer funds and switch between trading accounts in comparison to other platforms
  • Moving money and rebalancing your portfolio takes a bit of a manual input which does take considerable time especially if you’re managing multiple accounts
  • You will receive a lot of duplicative email pertaining to your accounts with Vanguard which can be really annoying

2. SigFig
Pros

  • SigFig is indeed a promising platform that has an interesting user interface with attractive visualizations
  • You can select from two different options, namely free evaluation and advice and automatic rebalancing at a fee of $10 per month

Cons

  • Although there is no doubt about the beauty of its interface, where it lacks is functionality. The interface feels too traditional when used and appears to emphasize on short period returns
  • Constant emailing can be irritating
  • A lot of screen space dedicated to short-term returns and real estate

3. Future Advisor
Pros

  • A pleasant user interface
  • FutureAdvisor also provides a view of all your investment which you are holding in different accounts
  • Offers two different accounts, like SigFig
  • Automatic tax-loss harvesting
  • FutureAdvisor enhances your current holdings (in contrast to liquidation and reinvestment)

Cons

  • Because of the fact that FutureAdvisor altered its models a couple of times over the years, it also charges an account management fee which is 0.5% more than other providers
  • A lacklustre customer support system, you may or may not get a reply from them pertaining to a query, complain and or an enquiry
  • Irritating emails about short-term profits
  • A non-transparent methodology in terms of your portfolio

4. Wealthfront
Pros

  • A visually pleasing interface, not to mention easy to use
  • Offers different portfolios for both IRA and other taxable accounts
  • Provides free management of your first $10k
  • Automatic tax-loss harvesting which can be useful for investors
  • Wealthfront has control of more assets than any other provider mentioned here
  • Reduced fee (0.25%)
  • A transparent system

Cons

  • For $100k accounts, the fee charged is higher compared to other packages
  • Minimum of $5k to register an account with Wealthfront
  • You have to create your account first in order to look at their internal interface

5. Betterment
Pros

  • A good website design and smart user interface
  • Depending on the type and size of your account, you can enjoy reduced fee up to (0.35% to 0.15%)
  • You can also choose to invest in fractional shares
  • Betterment ranks 2nd of the platforms in terms of number of customers
  • A transparent portfolio style
  • No initial deposits
  • Impressive foundational philosophy with a focus primarily on long-term returns and automation of trade
  • Offers automatic tax-loss harvesting
  • As of 20th of July this year, Betterment also offers an enhanced bond mix for accounts which are taxable for example IRA accounts

Cons

  • Betterment offers no REIT ETFs

All in all, these are five of the best platforms with their pros and cons to help you select the one that suits your needs the best.

- Advertisement -

The Rise of Bitcoin

By
Market Place
-
0
Bitcoin and criptocurrency

It was all thanks to the advent of Bitcoin people realized that there could be such a thing as computerized or digital currency. Now, the same digital currency which did indeed cause quite a frenzy when it first debuted in the world of trade just a couple of years ago is trying to evolve into something that could be of use to everybody. This newness and innovation made way for all the hard effort that is put into establishing and financially raising new business organizations and companies. For instance, brokerages that deals in Bitcoin and a plethora of Bitcoin trading platforms that can both be financially lucrative and boring.

You would have seen some pretty erratic price movements in Bitcoin shares over the past couple of years to come to the conclusion that maybe Bitcoin isn’t the way to make millions, yet. The price of Bitcoin dropped 20% last month, but the thing is in order to have faith in the digital currency’s power to make money, it is imperative you think about the ingenuity and the intricacy invested behind it. That is when you will see the reality will surely but gradually come in par with the rhetoric.

The Scenario

Even as financial analysts and entrepreneurs seek newer business models, it is true the Bitcoin convergence has been battling through numerous legacy problems, like the prosecution of the operator behind the ‘Silk Route’ scandal last year, the Silk Route was an online market where people used to peddle drugs in exchange for getting Bitcoins. Another example can be of Mt. Gox, a famous exchange platform in Tokyo that declared bankruptcy after the pilfering of over 850,000 Bitcoins by various hackers. At this point, regulation is proving to be a highly sensitive issue for Bitcoin. The problem is more complex than the initially anticipated by entrepreneurs.

The Background

For starters, digital currency isn’t something profoundly new, why? That’s because they have been consistently used in fantasy games played online. The interesting part is the fact that people are working on designing and developing a secure cryptocurrency that does not have a central issuer. Now that’s a potential head-turner.

The mystery creator or creators of Bitcoin Satoshi Nakamoto cracked a big puzzle which is central to just about every currency in the world and that is the management of its issuance which is controlling its forgery. Satoshi Nakamoto also provided another brilliant solution for cryptocurrency trade, i.e. to stop digital currency traders from spending the exact unit of the currency two times. Nakamoto’s solutions come in the form of an online ledger where each and every single transaction in regards to the Bitcoin is recorded and supervised by a group known as Bitcoin ‘miners’.

They use their computer to do computations and calculations which authenticate each Bitcoin transaction. This, in turn, stops users from double spending. The miners get to enjoy rewards for each Bitcoin mined although the speed of the entire mining process is rather limited and there will no Bitcoins mined over 21 million.

Bitcoin traders can use their Bitcoins to purchase a variety of things, which also includes a Tesla sports car. Traders of the currency can also store their Bitcoins on popular Bitcoin platforms, such as BitPat, Bitgo and Coinbase, which are all secure platforms.

The boom in Bitcoin share prices earlier last month failed to impress many as they said the spike in the price would not have any intrinsic value. Entrepreneurs from around the world disagree and most state the public has missed the point. They say that the reality of this cryptocurrency lies within its potential to be useful, especially when you talk about it being a foundation for a brand-new payment process. Albeit, it is all but a matter of time and money before you could start to see Bitcoin work.

- Advertisement -

The Future of Trading: Part 2

By
Market Place
-
0
What Makes an Elite Trader

The transformation which has been brought on by a surge of technological innovation has not affected trading trends and the capital markets need to be approached with holistic strategies which would have a long-term effect on the future productivity and flexibility in the financial industry. There have only been two dominating elements which have significantly added to the successful transformation of the trading world and those are digitization and access to vital data and statistics.

Mike Persico, the chief executive of Anova Technologies, said that,

“There is more money being poured into this wireless space than any time in its history. A lot of things are science fiction, but I like to say we operate in the world of science fact-ion.”

The evidence which has pointed out towards this fast transformation of the capital markets and trading firms and organizations requires a new approach to the technological aspects of the banking infrastructure must be implemented. The trading of assets, stocks, commodities and foreign currencies are all experiencing these massive but important changes. For example, many financial trading firms have now employed the use of electronic channels associated with each asset class instead of voice execution. Hugh Cumberland, the manager of financial services at Colt, stated,

“High frequency trading is driven by being either the fastest to market, or equal fastest to market, and coming second is like losing.”

OTC derivatives trading along with fixed income trading are now steadily moving towards being traded from organization financial exchanges. These alterations to the whole trading and trading execution environment works to substantially increase the requirements of different trading platforms and trading venues which means more data and more messaging which also makes routing decisions more complex, giving rise to multi-sourced risks and because of this there is now the need for more scrutinized monitoring, just as different investors, traders and regulators are increasing the reporting requirements.

Modern Trading

Under the modern framework, trading today depends on three things: speed, efficiency and scalability. In order to be able to react to the obstacle posed by the transformation it faces today. Many financial and economic analysts agree that strategic and tactical progression in the short-term will never present a solution for such problems and because of these reasons, traders are now seeing more strategic solutions being implemented in the same context.

Within this transformation, there are two important phrases that are often cited and these are the digitization of the trading environment and system and fast access to trading data. So, what does the digitization of the trading environment mean? Basically, what this means is that there is no longer ‘unified accessibility’ of trading systems and information which can be viewed by each and every trader, both individual and company traders. You can now enjoy access to real-time data which you can use to monitor your trades, orders and enhance your portfolio.

In the future, the trading infrastructure will have many information and connectivity protocols so that the whole trade and investment process (i.e. the starting of the trade to post trader analysis), will be managed centrally, via one point. And the main reason for this is the fact it will no doubt make the whole digitalization process much simpler and faster. And this is why you can now see a shift from legacy silos to an adoption of incorporated trading solutions which now play an important role in facilitating the completion of the digital trading infrastructure.

Mobility

A significant characteristic of this technological change is mobility, especially when you talk about particular capital markets and services. The simplicity in controlling trade flows, order book build-up, pricing and risk analysis and evaluation from smartphone and tablets maximizes the agility and execution of trading options. What it also does is increase the credibility of different financial organizations and brokers who now don’t have to operate from their desks or PCs and can now provide their services from virtually anywhere they want. Since the whole purpose of increasing mobility is to simplify everything, transcending into an easier trading environment with fewer applications will accelerate the entire trading infrastructure into a simple and mobile atmosphere.

The Data Aspect

When you talk about the flow of data and its accessibility, you need to consider three instances: timelessness, volume and security. This is a rather new aspect the experts have touched on. Electronic trading requires the use of real-time data and access to conducting trades, real-time access to market data, counterparty data and venue data.

What this does is produce bigger trade volumes and leads to quicker processing which allows the trader to make quick decisions in real-time and execute them right away. The utilization of cloud technology as a place for data management and access is being considered a more long-term solution which falls in line with the fundamentals of digitization of trading principles. The mentioned alterations in trading technology is going to cost both in regards to investments and trading resources. Since the results would only prove to affect the productivity of trading in the years to come, planning, design, phasing and costing will serve as being fundamental for the success of the entire transformation.

Where to Start?

The first thing which needs to be considered is the fact that there should be detailed mapping of the today’s trading infrastructure and the use of essential components which should be integrated into a trading platform that will provide the traders with one point of access for the workflow which can eliminate any reliance on traditional methods or on a fragmented infrastructure.

This strategy will certainly be in favour of the vendors of different trading platforms on which they will be able to provide traders standard workflow connectivity. The effect of this transition would be seen across the whole of Fintech that will surely reap the advantages provided by the effectiveness and efficiency of the transformation. All in all, the transformation of the capital markets will serve as a vital component for the resurgence of the entire financial industry.

 

Relevant Posts: 

The Future of Trading – Part 1

- Advertisement -
1...222324...26Page 23 of 26
- Advertisement -

APPLICATIONS

HOT NEWS

Trader Personality: Jim Rogers

Market Place - 0
New York, business center at night
Thought leaders
Which trader doesn’t dream of making millions and conveniently retire at the age of 30? Surely, it is every investor’s sole purpose and their...
Market Place News
leading digital platform for traders, forex news, the latest trading updates, currencies, resources for trading and personal finance and market analysis.
Contact us: [email protected]
Facebook Twitter

EVEN MORE NEWS

POPULAR CATEGORY