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Related papers: Diffusion Limit of Poisson Limit-Order Book Models

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Order positions are key variables in algorithmic trading. This paper studies the limiting behavior of order positions and related queues in a limit order book. In addition to the fluid and diffusion limits for the processes, fluctuations of…

Trading and Market Microstructure · Quantitative Finance 2015-10-14 Xin Guo , Zhao Ruan , Lingjiong Zhu

We consider a class of continuous-time stochastic growth models on $d$-dimensional lattice with non-negative real numbers as possible values per site. We remark that the diffusive scaling limit proven in our previous work [Nagahata, Y.,…

Probability · Mathematics 2010-09-14 Yukio Nagahata , Nobuo Yoshida

We study the diffusive limit approximation for a nonlinear radiative heat transfer system that arises in the modeling of glass cooling, greenhouse effects and in astrophysics. The model is considered with the reflective radiative boundary…

Analysis of PDEs · Mathematics 2021-10-12 Mohamed Ghattassi , Xiaokai Huo , Nader Masmoudi

This work tackles the diffusive limit for the Vlasov-Poisson-Fokker-Planck model. We derive a priori estimates which hold without restriction on the phase-space dimension and propose a strong convergence result in a L2 space. Furthermore,…

Analysis of PDEs · Mathematics 2023-06-13 Alain Blaustein

We briefly review data analysis of the Island order book, part of NASDAQ, which suggests a framework to which all limit order markets should comply. Using a simple exclusion particle model, we argue that short-time price over-diffusion in…

Statistical Mechanics · Physics 2009-11-07 Damien Challet , Robin Stinchcombe

We construct a pair of related diffusions on a space of interval partitions of the unit interval $[0,1]$ that are stationary with the Poisson-Dirichlet laws with parameters (1/2,0) and (1/2,1/2) respectively. These are two particular cases…

Probability · Mathematics 2017-03-23 Noah Forman , Soumik Pal , Douglas Rizzolo , Matthias Winkel

The aim of the study is to compare the standard Maxwell-Stefan model of diffusion with the higher-order one recently derived. This higher-order model takes into account the influence of the complete pressure tensor. A numerical scheme is…

Analysis of PDEs · Mathematics 2024-07-18 Bérénice Grec , Srboljub Simic

We study the analytical properties of a one-side order book model in which the flows of limit and market orders are Poisson processes and the distribution of lifetimes of cancelled orders is exponential. Although simplistic, the model…

Trading and Market Microstructure · Quantitative Finance 2019-07-15 Ioane Muni Toke

We justify rigorously the non-equilibrium-diffusion limit of the compressible Euler model coupled with a radiative transfer equation arising in radiation hydrodynamics. For general initial data, we establish the uniform existence of the…

Analysis of PDEs · Mathematics 2023-12-27 Qiangchang Ju , Lei Li , Zhengce Zhang

While efficient distribution learning is no doubt behind the groundbreaking success of diffusion modeling, its theoretical guarantees are quite limited. In this paper, we provide the first rigorous analysis on approximation and…

Machine Learning · Statistics 2023-03-06 Kazusato Oko , Shunta Akiyama , Taiji Suzuki

We propose a model for the dynamics of a limit order book in a liquid market where buy and sell orders are submitted at high frequency. We derive a functional central limit theorem for the joint dynamics of the bid and ask queues and show…

Trading and Market Microstructure · Quantitative Finance 2012-03-01 Rama Cont , Adrien De Larrard

This paper deals with the diffusive limit of the Jin and Xin model and its approximation by an asymptotic preserving finite volume scheme. At the continuous level, we determine a convergence rate to the diffusive limit by means of a…

Numerical Analysis · Mathematics 2024-06-06 Marianne Bessemoulin-Chatard , Hélène Mathis

We consider a system of particles undergoing correlated diffusion with elastic boundary conditions on the half-line. By taking the large particle limit we establish existence and uniqueness for the limiting empirical measure valued process…

Probability · Mathematics 2022-10-19 Ben Hambly , Julian Meier , Andreas Sojmark

This paper provides numerical results that demonstrate the validity of the nonclassical diffusion approximation to the nonclassical transport equation in certain 1-D diffusive systems. This result provides a more solid foundation in which…

Nuclear Theory · Physics 2018-12-27 Richard Vasques , Rachel Slaybaugh , Kai Krycki

In this article we propose a generalization of the theory of diffusion approximation for random ODE to a nonlinear system of random Schr\"{o}dinger equations. This system arises in the study of pulse propagation in randomly birefringent…

Analysis of PDEs · Mathematics 2012-12-14 A. de Bouard , M. Gazeau

We consider diffusion processes in media with pockets of large diffusivity. The asymptotic behavior of such processes is described when the diffusion coefficients in the pockets tend to infinity. The limiting process is identified as a…

Probability · Mathematics 2017-10-11 Mark Freidlin , Leonid Koralov , Alexander Wentzell

In the present paper, we study the diffusion limit of the classical solution to the unipolar Vlasov-Poisson-Boltzmann (VPB) system with initial data near a global Maxwellian. We prove the convergence and establish the convergence rate of…

Analysis of PDEs · Mathematics 2021-06-09 Hai-Liang Li , Tong Yang , Mingying Zhong

This paper develops a theoretical mesoscopic model of the limit order book driven by multivariate Hawkes processes, designed to capture temporal self-excitation and the spatial propagation of order flow across price levels. In contrast to…

Mathematical Finance · Quantitative Finance 2025-11-25 Levon Mahseredjian

We consider the initial-boundary value problem for an incompressible Oldroyd-B model with stress diffusion in two-dimensional upper half plane which describes the motion of viscoelastic polymeric fluids. From the physical point of view, the…

Analysis of PDEs · Mathematics 2023-05-23 Yinghui Wang , Huanyao Wen

We justify rigorously the equilibrium-diffusion limit of the model consists of a radiative transfer satisfied by the specific intensity of radiation coupled to a diffusion equation satisfied by the material temperature. For general initial…

Analysis of PDEs · Mathematics 2025-04-28 Lei Li