The Application of Big Data Analytics to Stock and Derivatives Trading Strategies
DOI:
https://doi.org/10.71222/k5gw0z43Keywords:
big data analysis, stock trading, derivatives trading, market forecast, risk managementAbstract
Big data analysis technology has gradually become a key trend in the development of the financial industry in improving trading strategies of stocks and their derivatives. Through the collection and in-depth analysis of a large amount of market information, investors can extract key intelligence, so as to optimize their trading choices and enhance the implementation efficiency of trading strategies. This paper explains the basic theory of price formation and risk management in the stock and derivative markets, and then analyzes the diversified application of big data technology in stock trading strategies, such as market prediction, stock screening, risk early warning model construction and quantitative trading practices. Then it discusses the specific role of big data in the field of derivatives trading, focusing on its application in the optimization of derivatives pricing model, market risk management, arbitrage strategy formulation and market trend prediction.
References
1. R. Marciano, V. Lemieux, M. Hedges, M. Esteva, W. Underwood, M. Kurtz, et al., "Archival records and training in the age of big data," in Re-Envisioning the MLS: Perspectives on the Future of Library and Information Science Education, vol. 44, Emerald Pub-lishing Limited, 2018, pp. 179–199. ISBN: 9781787548848.
2. N. M. Reddy, A. K. Budati, S. Islam, and G. Ramesh, "Enhanced elliptic curve-Diffie Hellman technique with big data analytics for satellite image security enhancement in Internet of Things systems," Earth Sci. Inform., vol. 17, no. 1, pp. 711–723, 2024, doi: 10.1007/s12145-023-01194-2.
3. Y. Jiang, T. Feng, and Y. Huang, "Antecedent configurations toward supply chain resilience: the joint impact of supply chain integration and big data analytics capability," J. Oper. Manag., vol. 70, no. 2, pp. 257–284, 2024, doi: 10.1002/joom.1282.
4. Y. Liu, Y. Bao, Y. Huang, M. Zhang, X. Li, et al., "How the National Health Insurance Coverage policy changed the use of lenvatinib for adult patients with advanced hepatocellular carcinoma: a retrospective cohort analysis with real world big data," Int. J. Equity Health, vol. 22, no. 1, p. 256, 2023, doi: 10.1186/s12939-023-02052-9.
5. P. Wangchuk, F. Jie, and K. Wangdi, "Big data analytics in the procurement process: organizational alignment and the behavior of procurement professionals in Bhutanese procuring agencies," J. Data Inf. Manag., vol. 6, no. 1, pp. 15–27, 2024, doi: 10.1007/s42488-023-00109-6.
