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Quantum computers must meet extremely stringent qualitative and quantitative requirements on their qubits in order to solve real-life problems. Quantum circuit fragmentation techniques divide a large quantum circuit into a number of…

Quantum Physics · Physics 2024-06-25 Saikat Basu , Arnav Das , Amit Saha , Amlan Chakrabarti , Susmita Sur-Kolay

Financial derivative pricing is a significant challenge in finance, involving the valuation of instruments like options based on underlying assets. While some cases have simple solutions, many require complex classical computational methods…

Computational Finance · Quantitative Finance 2025-05-15 Robert Scriba , Yuying Li , Jingbo B Wang

We study the performance and resource usage of the variational quantum factoring (VQF) algorithm for different instance sizes and optimization algorithms. Our simulations show better chance of finding the ground state when using VQE rather…

Quantum Physics · Physics 2022-08-16 Vivian Phan , Arttu Pönni , Matti Raasakka , Ilkka Tittonen

Despite extensive research efforts, few quantum algorithms for classical optimization demonstrate realizable quantum advantage. The utility of many quantum algorithms is limited by high requisite circuit depth and nonconvex optimization…

Quantum Physics · Physics 2022-01-27 Taylor L. Patti , Jean Kossaifi , Anima Anandkumar , Susanne F. Yelin

The recent development of quantum computing gives us an opportunity to explore its potential applications to many fields, with the field of finance being no exception. In this paper, we apply the deep quantum neural network proposed by Beer…

Computational Finance · Quantitative Finance 2022-05-17 Takayuki Sakuma

Demonstrating quantum advantage has been a pressing challenge in the field. Most claimed quantum speedups rely on a subroutine in which classical information can be accessed in a coherent quantum manner, which imposes a crucial constraint…

Quantum Physics · Physics 2025-11-04 Nhat A. Nghiem

Currency arbitrage leverages price discrepancies in currency exchange rates across different currency pairs to gain risk-free profits. It involves multiple trading, where short-lived price discrepancies require real-time, high-speed…

Quantum Physics · Physics 2025-11-03 Suman Kumar Roy , Rahul Rana , M Girish Chandra , Nishant Kumar , Manoj Nambiar

Quantum computing is becoming strategically relevant to finance because several core financial bottlenecks are already defined by combinatorial search, expectation estimation, rare-event analysis, representation learning, and long-horizon…

Computational Finance · Quantitative Finance 2026-04-10 Hui Gong , Akash Sedai , Thomas Schroeder , Francesca Medda

Machine Learning models capable of handling the large datasets collected in the financial world can often become black boxes expensive to run. The quantum computing paradigm suggests new optimization techniques, that combined with classical…

We give an upper bound on the resources required for valuable quantum advantage in pricing derivatives. To do so, we give the first complete resource estimates for useful quantum derivative pricing, using autocallable and Target Accrual…

Quantum computers are expected to have substantial impact on the finance industry, as they will be able to solve certain problems considerably faster than the best known classical algorithms. In this article we describe such potential…

Computational Finance · Quantitative Finance 2020-11-13 Adam Bouland , Wim van Dam , Hamed Joorati , Iordanis Kerenidis , Anupam Prakash

We evaluate strategies for reducing the run time of fault-tolerant quantum computations, targeting practical utility in scientific or industrial workflows. Delivering a technology with broad impact requires scaling devices, while also…

The quantum information science community has seen a surge in new algorithmic developments across scientific domains. These developments have demonstrated polynomial or better improvements in computational and space complexity,…

Quantum Physics · Physics 2022-05-03 Vincent R. Pascuzzi , Ning Bao , Ang Li

Quantum computing is an emerging technology with potentially far-reaching implications for national prosperity and security. Understanding the timeframes over which economic benefits and national security risks may manifest themselves is…

An important application for near-term quantum computing lies in optimization tasks, with applications ranging from quantum chemistry and drug discovery to machine learning. In many settings --- most prominently in so-called parametrized or…

Quantum Physics · Physics 2019-03-27 Maria Schuld , Ville Bergholm , Christian Gogolin , Josh Izaac , Nathan Killoran

We discuss how quantum computation can be applied to financial problems, providing an overview of current approaches and potential prospects. We review quantum optimization algorithms, and expose how quantum annealers can be used to…

Quantum Physics · Physics 2019-03-04 Roman Orus , Samuel Mugel , Enrique Lizaso

In this paper, we present a reproducible benchmarking framework that systematically compares QML models with architecture-matched classical counterparts across three financial tasks: (i) directional return prediction on U.S. and Turkish…

Machine Learning · Computer Science 2026-01-08 Rehan Ahmad , Muhammad Kashif , Nouhaila Innan , Muhammad Shafique

A derivative is a financial security whose value is a function of underlying traded assets and market outcomes. Pricing a financial derivative involves setting up a market model, finding a martingale (``fair game") probability measure for…

Quantum Physics · Physics 2022-09-20 Patrick Rebentrost , Alessandro Luongo , Samuel Bosch , Seth Lloyd

It is known that quantum computers can speed up Monte Carlo simulation compared to classical counterparts. There are already some proposals of application of the quantum algorithm to practical problems, including quantitative finance. In…

Quantum Physics · Physics 2020-09-02 Koichi Miyamoto , Kenji Shiohara

In this perspective, we discuss conditions under which it would be possible for a modest fault-tolerant quantum computer to realize a runtime advantage by executing a quantum algorithm with only a small polynomial speedup over the best…

Quantum Physics · Physics 2021-04-07 Ryan Babbush , Jarrod McClean , Michael Newman , Craig Gidney , Sergio Boixo , Hartmut Neven