Screen Based Trading and Open Order Book: From One-Sided Order Execution to Two-Sided Order Matching (New Economic Windows)

By: Otto Loistl and Georg Behm and Sascha Bakry

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Synopsis: This book explores screen-based trading with an open order book, where traders' decisions influence others in real time via that open order book. Modelling traders&’ actions using discrete choice, a method proven in other fields but new to finance, and the integration of discrete choice into a Markov Process, offers an innovative approach to understanding decision making under uncertainty. We call this combination "Doubly Stochastic Markov Process" (DSMP for short). The book is aimed at those interested in real market performance with traders&’ modelling based on behavioural expertise. Monitoring orders instead of prices creates a competitive advantage because the adjustment of prices requires prior adjustment of orders. Only the matching of orders generates transactions and prices. Efficient order management turns risky volatility into profits. The presentation of DSMP is preceded by an introductory overview of trading venues and concludes with an outlook on the increasing suitability of stochastic processes to implement the interactions of agents and to facilitate modelling the self-organisation of markets.

Book Quality:: Publisher Quality
ISBN-13:: 9783031990526
Related ISBNs:: 9783031990519
Publisher:: Springer Nature Switzerland
Date of Addition:: 11/04/25
Copyrighted By:: The Editor
Adult content:: No
Language:: English
Has Image Descriptions:: No
Categories:: Nonfiction, Business and Finance, Psychology, Mathematics and Statistics
Submitted By:: Bookshare Staff
Usage Restrictions:: This is a copyrighted book.