Hello everyone!
Today i thought i'd share an interesting article from New Scientist (Aug 2024) on whether quantum traders could beat the market. You can download it from the library as well.
Brief Overview: Quantum technology could shake up the stock market by allowing traders working at distant stock exchanges to coordinate decisions to buy and sell almost instantaneously. Will that disrupt the market or make it more efficient?
- Quantum trading is based on using quantum entanglement. This phenomenon is called "quantum telepathy". 2 quantum particles can influence each other instantaneously across large distances.
- Researchers from University of Chicago in Illinois argue that this kind of quantum entanglement can be used to gain advantages in the stock market, using only devices that are already commercially available
- The first companies to use quantum telepathy for high-frequency trading could destabilise the market, which raises the question of regulation.
- Researchers believe that the setup will be used for market destabilisation. Instead, they believe, firms will engage in competition to incorporate this technology into the high-frequency trading world to make markets more efficient.
How do you tihnk quantum trading disrupt the markets and how soon?
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Aya Pariy
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