Getting the drop on rival traders is to be welcomed, but the hash crash proved that social media is not always reliable. Can social media be trusted with your money, asks Dan Barnes.
Getting the drop on rival traders is to be welcomed, but the
hash crash proved that social media is not always reliable. Can
social media be trusted with your money, asks Dan Barnes.
The shrill chatter of social media is a valuable source of
data for traders. Using the right technology, firms can take
online news and gauge sentiment and use that as a tool to make
predictions on an asset’s price movements. For
some it is a research tool supporting traders, for others it is
a low latency data feed into lightning quick high-frequency
"We typically see a multi-strategy desk that not only takes
a cash position but also ends up exploiting the futures
market," says Rich Brown, global head of Elektron Analytics at
data and analytics provider Thomson Reuters. "Clients are
buy-side predominantly. Prop trading firms and hedge funds are
the majority. There is a focus in Chicago, New York and London.
It depends on the kind of strategies and the kind of risk."
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |