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Related papers: Optimal order placement in limit order markets

200 papers

In light of the growing market of Ad Exchanges for the real-time sale of advertising slots, publishers face new challenges in choosing between the allocation of contract-based reservation ads and spot market ads. In this setting, the…

Optimization and Control · Mathematics 2012-09-25 Santiago Balseiro , Jon Feldman , Vahab Mirrokni , S. Muthukrishnan

We develop a new market-making model, from the ground up, which is tailored towards high-frequency trading under a limit order book (LOB), based on the well-known classification of order types in market microstructure. Our flexible…

Trading and Market Microstructure · Quantitative Finance 2020-01-31 Baron Law , Frederi Viens

This paper studies an open question in the warehouse problem where a merchant trading a commodity tries to find an optimal inventory-trading policy to decide on purchase and sale quantities during a fixed time horizon in order to maximize…

Data Structures and Algorithms · Computer Science 2023-02-24 Ishan Bansal , Oktay Günlük

In this work we investigate the problem of order batching and picker routing in storage areas. These are labour and capital intensive problems, often responsible for a substantial share of warehouse operating costs. In particular, we…

Optimization and Control · Mathematics 2018-08-03 Cristiano Arbex Valle , John E Beasley , Alexandre Salles da Cunha

In this paper, we investigate the online allocation problem of maximizing the overall revenue subject to both lower and upper bound constraints. Compared to the extensively studied online problems with only resource upper bounds, the…

Machine Learning · Computer Science 2023-01-31 Qixin Zhang , Wenbing Ye , Zaiyi Chen , Haoyuan Hu , Enhong Chen , Yang Yu

Auctions are widely used in exchanges to match buy and sell requests. Once the buyers and sellers place their requests, the exchange determines how these requests are to be matched. The two most popular objectives used while determining the…

Data Structures and Algorithms · Computer Science 2024-03-06 Mohit Garg , Suneel Sarswat

The maximum-entropy sampling problem is a fundamental and challenging combinatorial-optimization problem, with application in spatial statistics. It asks to find a maximum-determinant order-$s$ principal submatrix of an order-$n$ covariance…

Optimization and Control · Mathematics 2020-02-03 Zhongzhu Chen , Marcia Fampa , Amélie Lambert , Jon Lee

In the present paper, we study the optimal execution problem under stochastic price recovery based on limit order book dynamics. We model price recovery after execution of a large order by accelerating the arrival of the refilling order,…

Trading and Market Microstructure · Quantitative Finance 2015-02-17 Masashi Ieda

Following the recent literature on make take fees policies, we consider an exchange wishing to set a suitable contract with several market makers in order to improve trading quality on its platform. To do so, we use a principal-agent…

Trading and Market Microstructure · Quantitative Finance 2021-03-09 Bastien Baldacci , Dylan Possamaï , Mathieu Rosenbaum

In this paper we explore optimal liquidation in a market populated by a number of heterogeneous market makers that have limited inventory-carrying and risk-bearing capacity. We derive a reduced form model for the dynamic of their aggregated…

Trading and Market Microstructure · Quantitative Finance 2022-09-01 Marina Di Giacinto , Claudio Tebaldi , Tai-Ho Wang

This paper deals with an optimal position management problem for a market maker who has to face uncertain customer order flows in an illiquid market, where the market maker's continuous trading incurs a stochastic linear price impact.…

Pricing of Securities · Quantitative Finance 2015-09-08 Masaaki Fujii

Pricing decisions are often made when market information is still poor. In turn, existing theoretical models often reason about the response of optimal prices to changing market characteristics without exploiting all available information…

Optimization and Control · Mathematics 2021-07-19 Stefanos Leonardos , Costis Melolidakis , Constandina Koki

The topics treated in this thesis are inherently two-fold. The first part considers the problem of a market maker optimally setting bid/ask quotes over a finite time horizon, to maximize her expected utility. The intensities of the orders…

Optimization and Control · Mathematics 2020-09-15 Diego Zabaljauregui

Electricity market operators worldwide use mixed-integer linear programming to solve the allocation problem in wholesale electricity markets. Prices are typically determined based on the duals of relaxed versions of this optimization…

Computer Science and Game Theory · Computer Science 2023-12-13 Mete Şeref Ahunbay , Martin Bichler , Teodora Dobos , Johannes Knörr

We examine the dynamics of the bid and ask queues of a limit order book and their relationship with the intensity of trade arrivals. In particular, we study the probability of price movements and trade arrivals as a function of the quote…

Trading and Market Microstructure · Quantitative Finance 2013-12-03 Alexander Lipton , Umberto Pesavento , Michael G Sotiropoulos

Optimal shelflisting invites profit maximization to become sensitive to the ways in which purchasing decisions are order-dependent. We study the computational complexity of the corresponding product arrangement problem when consumers are…

Computer Science and Game Theory · Computer Science 2016-11-15 Yongjie Yang , Dinko Dimitrov

The aim of this paper is to explain how parameters adjustments can be integrated in the design or the control of automates of trading. Typically, we are interested by the online estimation of the market impacts generated by robots or single…

Computational Finance · Quantitative Finance 2017-12-06 N Baradel , B Bouchard , Ngoc Minh Dang

We introduce the problem of optimal congestion control in cache networks, whereby \emph{both} rate allocations and content placements are optimized \emph{jointly}. We formulate this as a maximization problem with non-convex constraints, and…

Networking and Internet Architecture · Computer Science 2021-02-15 Khashayar Kamran , Armin Moharrer , Stratis Ioannidis , Edmund Yeh

We study how an e-commerce firm should make real-time fulfillment decisions in a two-layer distribution network when multi-item customer orders arrive sequentially and future demand is unknown. The central managerial tension is whether to…

Machine Learning · Computer Science 2026-05-26 Xi Chen , Yuze Chen , Ziyi Chen , Yuan Zhou

In the context of investment analysis, we formulate an abstract online computing problem called a planning game and develop general tools for solving such a game. We then use the tools to investigate a practical buy-and-hold trading problem…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Gen-Huey Chen , Ming-Yang Kao , Yuh-Dauh Lyuu , Hsing-Kuo Wong