A non-linear model of limit order book dynamics

N. Vvedenskaya, Y. Suhov, V. Belitsky

Research output: Chapter in Book/Report/Conference proceedingConference contribution

3 Scopus citations

Abstract

This paper introduces a prototype model in an attempt to capture some aspects of limit order book dynamics simulating market trading mechanisms. We start with a discrete time/space Markov process and then perform a re-scaling procedure leading to a deterministic dynamical system controlled by non-linear ODEs. This allows us to introduce approximants for the equilibrium distribution of the model represented by fixed points of deterministic dynamics.

Original languageEnglish (US)
Title of host publication2011 IEEE International Symposium on Information Theory Proceedings, ISIT 2011
Pages1260-1262
Number of pages3
DOIs
StatePublished - 2011
Event2011 IEEE International Symposium on Information Theory Proceedings, ISIT 2011 - St. Petersburg, Russian Federation
Duration: Jul 31 2011Aug 5 2011

Publication series

NameIEEE International Symposium on Information Theory - Proceedings
ISSN (Print)2157-8104

Other

Other2011 IEEE International Symposium on Information Theory Proceedings, ISIT 2011
Country/TerritoryRussian Federation
CitySt. Petersburg
Period7/31/118/5/11

All Science Journal Classification (ASJC) codes

  • Theoretical Computer Science
  • Information Systems
  • Modeling and Simulation
  • Applied Mathematics

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