DCM Capital launches trading platform incorporating social media data
London based trading platform provider DCM Capital has launched a CFD and spreadbetting solution that incorporates analysis of social media feeds to provide an additional layer of information to users.
The platform’s technology looks at Twitter, Facebook and other social media channels to find information that can give clues as to the performance of investments, including equities, indicies, FX, and commodities.
The data collected this way can be monitored via charts to assist users in identifying market trends, DCM said.
“Our aim is to create a community of better informed traders,” said Paul Hawtin, Founder & CEO, DCM Capital.
“Today, social media creates a vast amount of information and it has been proven that the sentiment derived from it can predict stock market movements. For the very first time, we are connecting this information source to the trading community, opening up the universe of social media data so traders can make more informed buying and selling decisions.”
“The big benefit is that our sentiment rating adds another risk mitigation dimension to trading. For instance, if users see a downward movement in the sentiment rating of a stock in which they are perhaps slightly overweight, they can immediately hedge their position. On the other hand, if they see the attitude surrounding a stock change for the better, a buying decision can be made based on more information than ever before.”