Having data is one thing, knowing how to read it and use it is something else. Within the financial sector, this issue has become a bigger deal for businesses and traders as big data solutions are becoming more accessible.
As a solution for analyzing collections of arrays of data, developers have increased the use of visualization products. Examples can be viewed in our everyday life such as Google maps using marker clusters or colorful icons to symbolize different types of destinations. In the trading world, perhaps the most common example of data visualization products are heat maps that display in color which assets or groups of securities are rising or falling on the day.
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In this regard, adding features for forex traders, Thomson Reuters has announced the launch of a data visualization offering for currencies that is being made available for free to users of the Thomson Reuters Eikon platform. Beyond a heat map of price changes, the new offering also provides visualization structures for currency volatility of spot and forward rates.
Similar to volatility surface calculations, Eikon’s visualization feature allows traders to spot anomalies in the direction of a currency’s implied volatility. Analysis of spot and forward volatility is used to estimate future hedging costs as well as calculate whether derivative prices are over or undervalued.