Quantum Advantage in Trading: A Game-Theoretic Approach

Khan, Faisal Shah; Linke, Norbert M.; Than, Anton Trong; Baron, Dror

doi:10.1177/29767032251333418

Quantum Advantage in Trading: A Game-Theoretic Approach

Journal Article · Thu Apr 17 00:00:00 EDT 2025 · Quantum Economics and Finance

DOI:https://doi.org/10.1177/29767032251333418· OSTI ID:2565041

^[1]; Linke, Norbert M. ^[2]; Than, Anton Trong ^[3]; Baron, Dror ^[4]

Taqtics LLC, USA, Rethinc. Labs, Kenan–Flagler Business School, University of North Carolina, USA
Duke Quantum Center and Department of Physics, Duke University, USA, Joint Quantum Institute and Department of Physics, University of Maryland, USA
Joint Quantum Institute and Department of Physics, University of Maryland, USA
Department of Electrical and Computer Engineering, North Carolina State University, USA

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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Sponsoring Organization:: USDOE

OSTI ID:: 2565041

Journal Information:: Quantum Economics and Finance, Journal Name: Quantum Economics and Finance Journal Issue: 1 Vol. 2; ISSN 2976-7032

Publisher:: SAGE PublicationsCopyright Statement

Country of Publication:: Country unknown/Code not available

Language:: English

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Quantum Advantage in Trading: A Game-Theoretic Approach

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