Related Experiment Video
Updated: Feb 17, 2026

An Analog Macroscopic Technique for Studying Molecular Hydrodynamic Processes in Dense Gases and Liquids
Published on: December 4, 2017
A model for foreign exchange markets based on glassy Brownian systems
M A Sánchez-Granero1, J E Trinidad-Segovia2, J Clara-Rahola3,4
1Department of Mathematics, University of Almería, Almería, Spain.
This study applies a physical model to foreign exchange market data, revealing similarities between currency price fluctuations and colloidal particle behavior in arrested states. The model bypasses the assumption of independent and identically distributed data.
Area of Science:
- Physics
- Financial Markets
- Complex Systems
Background:
- Foreign exchange (Forex) markets exhibit complex price fluctuation dynamics.
- Existing models often rely on the restrictive assumption of independent and identically distributed (i.i.d.) data.
- Arrested physical systems offer models for complex, non-equilibrium phenomena.
Purpose of the Study:
- To adapt a physical model from arrested systems for analyzing Forex price fluctuations.
- To investigate the distribution of currency pair price movements.
- To explore potential symmetries between financial market data and physical system behavior.
Main Methods:
- Utilized a well-established physical model from arrested physical systems.
- Analyzed foreign exchange rate data from 2010-2016 at yearly intervals with one-minute frequency.
- Fitted experimental Forex datasets with the chosen physical model.
Main Results:
- Demonstrated the model's efficiency in depicting currency pair price fluctuation distributions.
- Identified significant qualitative symmetry between Forex price fluctuations and colloidal particle positions in arrested states.
- Successfully applied a model that does not require the i.i.d. condition.
Conclusions:
- The physical model effectively captures the dynamics of foreign exchange markets.
- Symmetries exist between financial market behavior and phenomena in arrested physical systems.
- This approach offers a novel perspective on financial market modeling by relaxing the i.i.d. assumption.
More Related Videos
08:43A Fluorescence Fluctuation Spectroscopy Assay of Protein-Protein Interactions at Cell-Cell Contacts
Published on: December 1, 2018
10:52Multiscale Sampling of a Heterogeneous Water/Metal Catalyst Interface using Density Functional Theory and Force-Field Molecular Dynamics
Published on: April 12, 2019
Related Concept Videos
The Fluid Mosaic Model
Fluid Mosaic Model
Theories of Dissolution: The Danckwerts' Model and Interfacial Barrier Model
Physiological Pharmacokinetic Models: Blood Flow-Limited Versus Diffusion-Limited Models
Two-Compartment Open Model: Overview
The...
Model Approaches for Pharmacokinetic Data: Distributed Parameter Models
The distributed parameter models are specifically designed to account for variations and differences in some drug classes. This model is particularly useful for assessing regional concentrations of anticancer or...