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What is physics of financial markets?

Physics of financial markets

Physics of financial markets refers to the study of financial markets from a physics perspective. This discipline should not be confused with quantitative finance or econophysics, which only seek to build financial instruments rather than seeking to understand them.

Where have you heard about physics of financial markets?

Physics of financial markets has been the subject of many books over recent years. These include 'The Misbehaviour of Markets' by Benoit B. Mandelbrot and 'Beat the Market: A Scientific Stock Market System' by Edward O. Thorp and Sheen T. Kassouf.

What you need to know about physics of financial markets.

Physics of financial markets address various issues and theories including price dynamics, price formation, market ergodicity collective phenomena and market instabilities. This method of understanding financial processes differs from other studies usually employed in finance and economics since it does not consider beliefs, immeasurable notions and assumptions, and instead focuses on employing a scientific method only. After the financial crisis of 2008, many countries are now trying to regulate their financial market by employing physics.

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