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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Publication Details

Journal
Carolina Digital Repository (University of North Carolina at Chapel Hill)
Published
2025-05-09
DOI
https://doi.org/10.17615/af1s-7c34
Primary Topic
Economic theories and models
Type
article
Field-Weighted Citation Impact
0.00
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article

Quantum Advantage in Trading: A Game-Theoretic Approach

Norbert M. Linke, Dror Baron, Faisal Shah Khan, Anton T. Than
Carolina Digital Repository (University of North Carolina at Chapel Hill)
Economic theories and models
article

Quantum Advantage in Trading: A Game-Theoretic Approach

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

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.

Carolina Digital Repository (University of North Carolina at Chapel Hill)
University of North Carolina at Chapel Hill (US)
Openalex Percentile: Top 62%
Economic theories and models
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Quantum Advantage in Trading: A Game-Theoretic Approach — Norbert M. Linke, Dror Baron, et al. · Carolina Digital Repository (University of North Carolina at Chapel Hill) (2025) | TGRS Research Map | TGRS