{"id":1901,"date":"2016-01-14T08:39:45","date_gmt":"2016-01-14T08:39:45","guid":{"rendered":"http:\/\/www.rumbletalk.com\/blog\/?p=1901"},"modified":"2021-10-13T05:24:30","modified_gmt":"2021-10-13T05:24:30","slug":"trade-chat-service","status":"publish","type":"post","link":"https:\/\/rumbletalk.com\/blog\/index.php\/2016\/01\/14\/trade-chat-service\/","title":{"rendered":"Trade Chat Platform is an Indispensable Tool for Online Traders"},"content":{"rendered":"<pre><span style=\"color: #999999;\">Updated on Apr 2017<\/span><\/pre>\n<p>Financial trading is a business that requires an abundance of information. This article tries to detail the role Trade chat is taking in this times.<\/p>\n<p>A trader should be equipped with data and information in order to make the\u00a0right decision at the right time.<\/p>\n<p>Regardless of what market the trade is done, whether it is the stock market, futures, currencies or commodities, it suffices to say data and information are the\u00a0ammunition for successful financial trading.<\/p>\n<p>Two recent trends in financial trading are\u00a0community trading and algorithm trading or algo-trading. They are\u00a0similar in that both use\u00a0automated tools for their trading activities. The difference is in the people involved in those types of trading.<\/p>\n<p>Community trading relies on groups of people sharing information, while algo-trading relies on complex mathematical formulas.\u00a0Regardless both of them use\u00a0trade chat because both of them requires an extensive amount of communication.<\/p>\n<figure style=\"width: 756px\" class=\"wp-caption alignnone\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/rumbletalk-images-upload.s3.amazonaws.com\/8cb8eaa7aa0c8efdda886127cc4b7953\/1492944795-traders-chat-room.png\" alt=\"RumbleTalk a trade chat platform\" width=\"756\" height=\"476\" \/><figcaption class=\"wp-caption-text\">Add technical graphs to your social trade chat<\/figcaption><\/figure>\n<h2>Community trading and trade chat<\/h2>\n<p>Community trading is a trading activity that engages a community to share data and information in a close group or circle.<\/p>\n<p>In financial trading, the terms used to define the trading activity is called social trading. Social trading uses trade chat rooms and online forums heavily as their communication method. Investors, brokers, and traders communicate with trade chat to share information, share tips and\u00a0tricks, and exchange trading strategy. In a more advanced form of social trading, members of a community can copy trading positions from a respected and renowned trader.<\/p>\n<p>In a more advanced form of social trading, members of a community can copy trading positions from a respected and renowned trader.<\/p>\n<p>This community trading has also spread to marketplaces other than the financial market. Communities formed of people with same interest are often engaged in trading activities among members. Although such a community is not targeted\u00a0to be a trading community in\u00a0the first place, as the community grows, the members of\u00a0the\u00a0community start to exchange their collections or sell their vintage collections.<\/p>\n<p>This is when trading in the community begins and this is the time the trade chat will become an indispensable tool for the community.<\/p>\n<p>Communities such as a manga or comic communities, gaming, music fans, and action figure communities are the ones that often integrate\u00a0trading activity into their communities. These types of communities are heavy users of chat rooms and forums and as the community grows in community trading, trade chat usage becomes imminent.<\/p>\n<h2>Trade chat for algo-trading<\/h2>\n<p>Algo-trading is automated trading. Often called black-box trading, due to heavy reliance of computer, it is a form of trading that depend on computers that are\u00a0programmed to follow a defined set of instructions for placing a trade in order to generate profits. The aim of using computers is\u00a0to increase the speed and frequency of trading that is impossible for a human to do.<\/p>\n<p>However, algo-trading has\u00a0a high possibility to administer a high-frequency trading which exposes high risk and is considered controversial.<\/p>\n<p>As trading positions are\u00a0generated by complex mathematical algorithms, the potential of algo-trading to entrap high-frequency trading is opened.<\/p>\n<p>This\u00a0is because algo-trading uses computer analysis to predict a market movement using a set of complex mathematical formulas. Based on the instructions in the formula, when a certain event occurs the computer will execute a trading position.<\/p>\n<p>During a high volatility market, such as what happened last week the global financial market, computers might execute excessive trading position resulting in high-frequency trades.<\/p>\n<p>This\u00a0is because algo-trading uses computer analysis to predict a market movement using a set of complex mathematical formulas. Based on the instructions in the formula, when a certain event occurs the computer will execute a trading position.<\/p>\n<p>During a high volatility market, such as what happened last week the global financial market, computers might execute excessive trading position resulting in high-frequency trades.<\/p>\n<p>Although market regulators have not declared high-frequency trading to be\u00a0illegal the activity has been under scrutiny by financial authorities around the world. There are some cases in which violations occurred due to a computer decision to make a trading position such as the May 2010 Flash Crash in the Dow Jones Industrial Average.<\/p>\n<p>One case of insider trading in September 2013 on the Chicago futures market occurred when a decision made by the\u00a0Federal Reserve was executed by a trader in the Chicago futures market in just 2 milliseconds while someone who stood by at Washington after the announcement would have taken more than 3 milliseconds to inform traders in Chicago using a trade chat. That is\u00a0a strong indication of algo-trading.<\/p>\n<p>The last case was in January 2015, when exchange operators were fined by the SEC for revealing order types enabling algo-trader to execute high-frequency trading before other traders.<\/p>\n<h2>Trade chat in hybrid community and algo-trading<\/h2>\n<p>In an advanced form of social and\u00a0community trading with a copy trading method, \u00a0there also is \u00a0a new type of trading. This is a hybrid trading, formed as a combination of community and algo-trading.<\/p>\n<p>This method is called copy trading. Usually, the method is used in a trading community when a renowned trader is used as a barometer and algo-trading is employed consecutively by members of the trading community. Actually, this is the type of trading that is most prone to high-frequency trading\u00a0since computers can copy other positions and execute the same strategy without communication\u00a0between traders.<\/p>\n<p>Trade chat is needed in this hybrid trading in order to inform all members of the community to stop trading before they engage in risky high-frequency trading.<\/p>\n<p>Get your <a href=\"https:\/\/www.rumbletalk.com\">own chat room<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Updated on Apr 2017 Financial trading is a business that requires an abundance of information. This article tries to detail the role Trade chat is taking in this times. A trader should be equipped with data and information in order to make the\u00a0right decision at the right time. Regardless of what market the trade is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"featured_image_url":"","seo_focus_kw":"","seo_meta_desc":""},"categories":[12,9],"tags":[179,51,178,180],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.10 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Trade Chat, Algo-Trading and Community Trading<\/title>\n<meta name=\"description\" content=\"Trade Chat, Algo-Trading and Community Trading: RumbleTalk lets you use your own chat service to upload images and graphs to your community while chatting.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/rumbletalk.com\/blog\/index.php\/2016\/01\/14\/trade-chat-service\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trade Chat, Algo-Trading and Community Trading\" \/>\n<meta property=\"og:description\" content=\"Trade Chat, Algo-Trading and Community Trading: RumbleTalk lets you use your own chat service to upload images and graphs to your community while chatting.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/rumbletalk.com\/blog\/index.php\/2016\/01\/14\/trade-chat-service\/\" \/>\n<meta property=\"og:site_name\" content=\"Online Group Chat Room Plugin for Websites and Live events\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/rumbletalk\" \/>\n<meta property=\"article:published_time\" content=\"2016-01-14T08:39:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-10-13T05:24:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/rumbletalk-images-upload.s3.amazonaws.com\/8cb8eaa7aa0c8efdda886127cc4b7953\/1492944795-traders-chat-room.png\" \/>\n<meta name=\"author\" content=\"Editor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@rumbletalk\" \/>\n<meta name=\"twitter:site\" content=\"@rumbletalk\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Editor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/rumbletalk.com\/blog\/index.php\/2016\/01\/14\/trade-chat-service\/\",\"url\":\"https:\/\/rumbletalk.com\/blog\/index.php\/2016\/01\/14\/trade-chat-service\/\",\"name\":\"Trade Chat, Algo-Trading and Community Trading\",\"isPartOf\":{\"@id\":\"https:\/\/rumbletalk.com\/blog\/#website\"},\"datePublished\":\"2016-01-14T08:39:45+00:00\",\"dateModified\":\"2021-10-13T05:24:30+00:00\",\"author\":{\"@id\":\"https:\/\/rumbletalk.com\/blog\/#\/schema\/person\/25d71b46ff2470eaf367d02f9d47726c\"},\"description\":\"Trade Chat, Algo-Trading and Community Trading: RumbleTalk lets you use your own chat service to upload images and graphs to your community while chatting.\",\"breadcrumb\":{\"@id\":\"https:\/\/rumbletalk.com\/blog\/index.php\/2016\/01\/14\/trade-chat-service\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/rumbletalk.com\/blog\/index.php\/2016\/01\/14\/trade-chat-service\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/rumbletalk.com\/blog\/index.php\/2016\/01\/14\/trade-chat-service\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/rumbletalk.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Trade Chat Platform is an Indispensable Tool for Online Traders\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/rumbletalk.com\/blog\/#website\",\"url\":\"https:\/\/rumbletalk.com\/blog\/\",\"name\":\"Online Group Chat Plugin for Websites and Event\",\"description\":\"Embed a social group chat for communities and events. 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