The Impact of Big Data and Business Intelligence on Financial Trading Market

October 24, 2017
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Being able to predict what happens within the financial trading market and the business world puts an investor or even a business at a massive advantage. It allows investors and business to get a good understanding of when a certain stock niche or company is going to do well or when their ratings will drop.

Having this knowledge allows companies to make a fair amount of money through investing in the correct stocks and selling shares when the shares are at their highest point, which allows the company to maximize the profit from those stocks.

Depending on who you talk to many people will say that having this kind of in-depth knowledge of what the stock and financial trading market will do, is unfair and in some cases you may even find that your company will come under investigation because it is believed that you and your company are making use of insider trading, which a pretty serious crime to be accused of.

What is insider trading?

According to investopedia.com insider trading is the buying or selling of secure information about stocks or trades which will take place (in context of this article) to public party’s when the information is still unavailable to the public. Insider trading can only be legal if the information traded is available to the general public otherwise the trade is illegal. You can read more about insider trading here.

Is there a way to making use of insider trading?

In order for companies to get the best read of what is happening on the financial market they will either have to make use of insider trading or they can make use of a new technique which is being utilized by other companies around the world.

They can choose to make use of Big Data and Business Intelligence.

What is Big Data?

When you come across large amounts of data, whether they are in a structured or unstructured format we refer that collection as “Big Data”.

This collection of data will often seem overwhelming and there is almost no chance of anybody taking a look at the data and seeing a pattern.

It is vital to know that the amount of big data is irrelevant, as for companies to make use of big data they will need to know how to use the data in the correct way.

The main benefit of using big data is that when it when a company makes use of the right algorithm for the big data, the insights which the company can gain from the processed big data can be invaluable to the company, which can lead to the company staying succeeding or avoiding a financial crash.

What is Business intelligence?

Business intelligence refers to the systems, technology and the algorithms which are used to collect, analyses and process and the end result for the data which is used to the phrase “big data”.

The idea behind business intelligence is to aid a company in the making correct decisions when it comes to large volumes of data.

How do these two aspects affect the financial market?

The roles in which both Business Intelligence and Big data play to help a company analyze the financial market is invaluable to any company or persons who choose to make use of it.

The main reason behind this is, persons and companies who choose to make use of these technologies are able to give the algorithms the instruction to collect any information from any period of time as long as there is a digital record of the information the algorithm can collect the information.

The process will then analyze the information and give the user an extremely accurate result of what the outcome of the data was and can give a prediction to the person or company and in terms of the financial market recommend where the company or person should invest and when the group should sell their shares.

Conclusion

There is no doubt that big data and business intelligence play a massive role in influencing the financial market, and is the only legal way that persons and companies can gain an upper hand at predicting where to invest and when to sell stocks, which helps add value to the financial market.