Categories
  Encyclosphere.org ENCYCLOREADER
  supported by EncyclosphereKSF

Physics of financial markets

Topic: Physics

 From HandWiki - Reading time: 2 min
Short description: Discipline that studies financial markets as physical systems

Physics of financial markets is a discipline that studies financial markets as physical systems. It seeks to understand the nature of financial processes and phenomena by employing the scientific method and avoiding beliefs, unverifiable assumptions and immeasurable notions, not uncommon to economic disciplines.

Physics of financial markets addresses issues such as theory of price formation, price dynamics,[1][2] market ergodicity,[3][4][5] collective phenomena, market self-action, and market instabilities.

Physics of financial markets should not be confused with mathematical finance, which are only concerned with descriptive mathematical modeling of financial instruments without seeking to understand nature of underlying processes.

See also

References

  1. ↑ Nastasiuk, Vadim A. (2014). "Emergent quantum mechanics of finances". Physica A: Statistical Mechanics and Its Applications (Elsevier BV) 403: 148–154. doi:10.1016/j.physa.2014.02.037. ISSN 0378-4371. Bibcode: 2014PhyA..403..148N. 
  2. ↑ Nastasiuk, V.A. (2015). "Fisher information and quantum potential well model for finance". Physics Letters A (Elsevier BV) 379 (36): 1998–2000. doi:10.1016/j.physleta.2015.06.052. ISSN 0375-9601. Bibcode: 2015PhLA..379.1998N. 
  3. ↑ Peters, O.; Klein, W. (2013-03-08). "Ergodicity Breaking in Geometric Brownian Motion". Physical Review Letters 110 (10): 100603. doi:10.1103/physrevlett.110.100603. ISSN 0031-9007. PMID 23521245. Bibcode: 2013PhRvL.110j0603P. 
  4. ↑ Peters, Ole (2011). "Optimal leverage from non-ergodicity". Quantitative Finance (Informa UK Limited) 11 (11): 1593–1602. doi:10.1080/14697688.2010.513338. ISSN 1469-7688. 
  5. ↑ Lillo, Fabrizio; Mantegna, Rosario N. (2000-11-01). "Variety and volatility in financial markets". Physical Review E (American Physical Society (APS)) 62 (5): 6126–6134. doi:10.1103/physreve.62.6126. ISSN 1063-651X. PMID 11101943. Bibcode: 2000PhRvE..62.6126L. 



Retrieved from "https://handwiki.org/wiki/index.php?title=Physics:Physics_of_financial_markets&oldid=2180656"
Licensed under CC BY-SA 3.0 | Source: https://handwiki.org/wiki/Physics:Physics_of_financial_markets
9 views | Status: cached on August 13 2024 05:55:09
↧ Download this article as ZWI file
Encyclosphere.org EncycloReader is supported by the EncyclosphereKSF