Quantum Advantage in Trading: A Game-Theoretic Approach

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.

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Institutions

Publication Details

Journal
Quantum Economics and Finance
Published
2025-04-17
DOI
https://doi.org/10.1177/29767032251333418
Citations
2
Primary Topic
Quantum Mechanics and Applications
Type
article
Field-Weighted Citation Impact
2.49

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article

Quantum Advantage in Trading: A Game-Theoretic Approach

Norbert M. Linke, Dror Baron, Faisal Shah Khan, Anton T. Than
2 citations
Quantum Economics and Finance
Quantum Mechanics and Applications
2.49
article

Quantum Advantage in Trading: A Game-Theoretic Approach

Norbert M. Linke, Dror Baron, Faisal Shah Khan, Anton T. Than
article en
2 citations

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.

Quantum Economics and FinanceVol. 2(1)
TATI University College (MY), North Carolina State University (US), Duke University (US), University of Maryland, College Park (US), Flagler College (US)
National Science Foundation
Openalex Percentile: Top 12%
Quantum Mechanics and Applications
2.49
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