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Redefining Derivative Strategies in the Era of Tech 4.0

Year: 2024
Type: article
Abstract: : The derivatives market has undergone significant changes with the integration of Technology 4.0 tools. The paper explores how advanced technological tools are reshaping derivative by convergence of Artificial Intelligence (AI), the Internet of Things (IoT), Blockchain, Robotic Process Automation (RPA), and other emerging technologies. The paper shows that AI, with its predictive analytics, provides deep insights into market trends, helping traders make better-informed decisions. IoT integration enables the use of real-time data to influence pricing and trading strategies, especially in financial derivatives. Blockchain’s transparency and immutability are revolutionizing trade execution, settlement, and compliance, ensuring faster and more secure transactions. RPA enhances back-office operations by reducing human errors and accelerating processes. Moreover, the paper examines how these technologies interact with each other. It argues that the full potential of Tech 4.0 in the derivatives market can only be realized when these tools are used in tandem. By integrating these technologies, traders can develop strategies that are not only responsive to current market conditions but also capable of predicting future trends.
Author: Dr. Rani L
Language: English
Open Access status: diamond
OpenAlex ID: W4405569583
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