Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    sales and data analytics
    How Data Analytics Improves Lead Management and Sales Results
    9 Min Read
    data analytics and truck accident claims
    How Data Analytics Reduces Truck Accidents and Speeds Up Claims
    7 Min Read
    predictive analytics for interior designers
    Interior Designers Boost Profits with Predictive Analytics
    8 Min Read
    image fx (67)
    Improving LinkedIn Ad Strategies with Data Analytics
    9 Min Read
    big data and remote work
    Data Helps Speech-Language Pathologists Deliver Better Results
    6 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: The Fascinating Intersection Of Social Media, Big Data And Forex Trading
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Analytics > Social Media Analytics > The Fascinating Intersection Of Social Media, Big Data And Forex Trading
Big DataExclusiveSocial Media Analytics

The Fascinating Intersection Of Social Media, Big Data And Forex Trading

Diana Hope
Diana Hope
7 Min Read
big data and forex trading
Shutterstock Licensed Photo
SHARE

Big data is changing the future of financial markets in fascinating ways. Most experts discuss the impact it has had on the stock market, but it is changing forex in even bigger ways. This is most evident when looking at the role that big data plays in social media, which is influencing forex in unexpected ways.

Contents
Big Data and Social Media Are Both Changing the Rules of ForexTraders are Better InformedSpreading News and Information fasterSocial TradingFinal Thoughts: Social Media and Big Data Are Gamechangers for Forex

Big Data and Social Media Are Both Changing the Rules of Forex

Social media has played a massive role in many industries. Big data is making it more versatile, especially with marketing in the financial industry. The Forex Market trades trillions of dollars. It is the biggest market in the world. It is not as popular as the markets trading commodities and financial instruments. This is ironic given the potential for people to make a lot of money in it but there is an explanation. As forex becomes more popular, it becomes more dependent on big data. Big data scientist Zak Goldberg says it is the future of the forex industry:

?Big data is the future of many forms of technology, including the world of forex. Big data could change the way we trade, the way we make decisions and the way that we reinvest our earnings. In short, it could change our entire way of trading. In this post, we look at why big data is the future of forex trading.?

Zak?s focus has been primarily on the role of big data in trading. But is equally important in understanding customers and marketing, which social media plays a role in. Until recently, the Forex market was a mysterious entity that had massive barriers to entry. Therefore, to the average person, it was shrouded in mystery. However, with the advent of social media, the foreign exchange market has opened up and this development can be attributed to among other things, social media. What relation does social media have with the forex market? There is a general consensus that the foreign exchange industry is not utilizing social media fully. The benefits which the forex accrues from social media include:

  • Connectivity amongst the traders
  • Faster Communication of news and trends
  • Better and more informed decision making

Social media gives forex platforms access to a treasure trove of data that helps with all of these things. This helps data savvy forex marketers make better decisions.

More Read

Tips for Exploring Financial Data with Business Intelligence
The Future of Marketing: Combining Big Data with Intuition
Data Analytics Optimizes Shipping through KPI Tracking
The Importance of Good Visualizations
How AI Can Improve Your Annotation Quality?

Traders are Better Informed

Of the mainstream social media platforms (those open to the general public), LinkedIn and Twitter are perfect for this industry. LinkedIn is the best because brokers and traders can form groups and discuss Forex matters. They can post trends, observations, and predictions to an audience that cares about these subjects.

Spreading News and Information faster

A hacker once breached Associated Press? Twitter account and tweeted that White House had just had an explosion. The impact on the market was massive. It plummeted drastically and although it recovered soon after the news was confirmed as fake, it showed just how powerful social media is. Considering how volatile the forex markets are, traders can now check on their newsfeeds to provide them with the information they can use to make decisions. They should only ensure that the news is from credible sources before they act.

Social Trading

When we hear the word ?social media? the words Facebook, Twitter, LinkedIn, Instagram, and names of other social platforms immediately pop up in our minds. Unknown to the average person, however, is the fact that there are actually other social networking tools for Forex traders. These social networks are usually established when a Forex broker partners with a provider or develops their own network. Some of these networks include:

  • FX Copy by Vantage FX
  • FXStat Tradebook by FXOpen
  • IBFXConnect by Interbank FX
  • Open Book by eToro

The social networks developed by the brokers are perfect examples of social media?s interaction with forex trading. Unlike mainstream social platforms, these forums are custom-built for the traders. Therefore, they have features that enable traders to share their profile, post their trades on an ongoing basis, and interact with their fellow merchants on matters to do with the forex market. This concept is referred to as ?social trading.? It is catching on as more brokers realize the benefits of fostering communities among clients. The only danger they have to be up against is the rise of fake accounts run by non-human entities (bots). One way in which social trading is proving a hit is by the way they allow traders to analyze their own trades, compare it with others, and even copy what other traders are doing. Newbies or traders who don?t have the time to analyze the markets for themselves can simply follow what successful traders are doing. Open Book by eToro allows users to choose the traders they want to copy as well as the amount of money they want to invest. In summary, the benefits of Social Trading are:

  • Makes entry of new traders more seamless: They can rely on what other traders are doing and copy them.
  • Alerts traders of events and news in the Forex market: Some platforms develop calendars and run active news segments geared towards informing their clients.
  • Allows traders to share ideas and insights
  • Builds an ecosystem that enables brokers to analyze the market better.

Final Thoughts: Social Media and Big Data Are Gamechangers for Forex

Social media is a powerful tool in business. Although it is making inroads in the forex markets, there is room for improvement. The benefits outweigh the demerits of relying on social networks for information. The concept of social trading is also catching on. Both mainstream social media and the less orthodox but important social platforms can be used by traders. They can now make better decisions and interact with their peers in a manner that was unheard of in the past.

TAGGED:big datadata analyticsforexforex tradingsocial media
Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

sales and data analytics
How Data Analytics Improves Lead Management and Sales Results
Analytics Big Data Exclusive
ai in marketing
How AI and Smart Platforms Improve Email Marketing
Artificial Intelligence Exclusive Marketing
AI Document Verification for Legal Firms: Importance & Top Tools
AI Document Verification for Legal Firms: Importance & Top Tools
Artificial Intelligence Exclusive
AI supply chain
AI Tools Are Strengthening Global Supply Chains
Artificial Intelligence Exclusive

Stay Connected

1.2kFollowersLike
33.7kFollowersFollow
222FollowersPin

You Might also Like

big data for user-generated content
Big DataExclusiveNewsRisk Management

Using Big Data to Minimize the Risks of User-Generated Content

5 Min Read
data driven business decision making
Business Intelligence

5 Step Process For Insightful Data Driven Business Decision Making

7 Min Read
predictive analytics in cms
AnalyticsExclusivePredictive Analytics

The Fascinating Role of Predictive Analytics in CMS Today

6 Min Read

The Big Question In Big Data Is…What’s The Question?

7 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai chatbot
The Art of Conversation: Enhancing Chatbots with Advanced AI Prompts
Chatbots
AI chatbots
AI Chatbots Can Help Retailers Convert Live Broadcast Viewers into Sales!
Chatbots

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?