The Push of Financial Technology Innovation on Derivatives Trading Strategy Optimization

Yilin Fu

doi:10.71222/5mdpn225

Authors

Yilin Fu Brandeis International Business School, Brandeis University, Waltham, Massachusetts, 02453, USA Author

DOI:

https://doi.org/10.71222/5mdpn225

Keywords:

financial technology, derivatives, trading strategy, big data, blockchain

Abstract

The innovation of financial technology has significantly advanced the optimization of derivatives trading strategies. By leveraging cutting-edge tools such as quantitative trading algorithms, big data analytics, and blockchain technology, fintech enhances the speed, precision, and reliability of financial transactions. These technologies not only strengthen risk management capabilities but also improve market transparency, thereby fostering a more informed and efficient trading environment. In addition, fintech facilitates real-time monitoring of market conditions, enabling traders and institutions to respond swiftly to fluctuations and potential anomalies, which contributes to reducing market volatility. Moreover, the integration of automated and intelligent systems supports fairer market practices by minimizing human errors and information asymmetries. This paper aims to comprehensively examine the practical applications of fintech in derivatives trading, exploring how its deployment improves operational efficiency, strengthens market integrity, and stimulates innovation and growth within the derivatives market. Through detailed analysis of technological frameworks, trading mechanisms, and performance outcomes, the study provides insights into the transformative role of fintech in shaping modern derivatives markets and highlights potential avenues for further technological advancement and strategic adoption.

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