English

Exclusion particle models of limit order financial markets

Condensed Matter 2007-05-23 v2

Abstract

Using simple particle models of limit order markets, we argue that mid-term over-diffusive price behaviour is inherent to the very nature of these markets. Several rules for rate changes are considered. We obtain analytical results for bid-ask spread properties, Hurst plots and price increment correlation functions.

Keywords

Cite

@article{arxiv.cond-mat/0208025,
  title  = {Exclusion particle models of limit order financial markets},
  author = {Damien Challet and Robin Stinchcombe},
  journal= {arXiv preprint arXiv:cond-mat/0208025},
  year   = {2007}
}

Comments

13 pages. Completely rewritten, new results added