Fluctuations and response in financial markets: the subtle nature of 'random' price changes

Using trades and quotes data from the Paris stock market, we show that the random walk nature of traded prices results from a very delilcated interplay between two opposite tendencies: long-range correlated market orders that lead to super-diffusion (or persistence), and mean revrting limit orders t...

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Bibliographic Details
Published in:Quantitative finance Vol. 4; no. 2; pp. 176 - 190
Main Authors: Bouchaud, Jean-Philippe, Gefen, Yuval, Potters, Marc, Wyart, Matthieu
Format: Journal Article
Language:English
Published: IOP Publishing Ltd 01.04.2004
Taylor and Francis Journals
Series:Quantitative Finance
ISSN:1469-7688, 1469-7696
Online Access:Get full text
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