International Journal of Advances in Social Sciences
  • Year: 2019
  • Volume: 7
  • Issue: 1and2

From the Social Media to the Social Trading: A Financial Perspective

  • Author:
  • Marcello Forcellini*, Andrea Vivoli**
  • Total Page Count: 8
  • Page Number: 15 to 22

Italy

*Corresponding Author E-mail: marcello.forcellini@gmail.com

**info@andreavivoli.com

Online Published on 15 April, 2024.

Abstract

The paper starts analyzing the evolution of social media in the financial field according to a new phenomenon, called social trading. Precisely, there is an increasing number of trading platforms which enable all segments of investors -such as the retail ones -to operate in financial markets with risky financial contracts called contracts for difference (CFD). The paper describes how the on-line trading platforms of CFDs work and how the new international regulations are changing the CFD market. It also provides an overview of the main tools and services that trading platforms are offering that are driving the social trading to become a reference social media in the financial field. Finally, the paper examines some possible challenges that the social trading could face following the new regulations and market trends in order to protect investors from eventually adopting insane asset allocation strategies.