Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7375273 | Physica A: Statistical Mechanics and its Applications | 2018 | 16 Pages |
Abstract
In this research, we propose a macroscopic model of the equity market based on the physics of fluid dynamics. We develop sensors triggered by certain properties of the macroscopic variables, density and velocity, that can alert regulators to abnormal activity. Fluid flow in physics will be used to measure the irregularities found in the behavior of financial markets. Testing the proposed sensors on the day of a flash crash suggests further investigation in this area.
Related Topics
Physical Sciences and Engineering
Mathematics
Mathematical Physics
Authors
Abdullah AlShelahi, Romesh Saigal,