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Quantum Advantage in Trading: A Game-Theoretic Approach

Quantum Physics 2025-04-21 v3 Theoretical Economics

Abstract

Quantum games, like quantum algorithms, exploit quantum entanglement to establish strong correlations between strategic player actions. This paper introduces quantum game-theoretic models applied to trading and demonstrates their implementation on an ion-trap quantum computer. The results showcase a quantum advantage, previously known only theoretically, realized as higher-paying market Nash equilibria. This advantage could help uncover alpha in trading strategies, defined as excess returns compared to established benchmarks. These findings suggest that quantum computing could significantly influence the development of financial strategies.

Keywords

Cite

@article{arxiv.2501.17189,
  title  = {Quantum Advantage in Trading: A Game-Theoretic Approach},
  author = {Faisal Shah Khan and Norbert M. Linke and Anton Trong Than and Dror Baron},
  journal= {arXiv preprint arXiv:2501.17189},
  year   = {2025}
}

Comments

17 pages, 11 figures

R2 v1 2026-06-28T21:22:39.513Z