Quantum Finance

In the last century along with the improvement of communication and technology resulting in the growth of the data transfer rate thanks to the social media resources, the concept of fragmented markets began to fade out. In this new world, the markets can easily access to the instant condition of the other ones and one market as an element of the whole network cannot act individually without affecting the network. While this instant interaction is not describable in the language of classical mechanics, it is a well-known phenomenon in quantum mechanics domain namely quantum entanglement. These new aged markets are entangled to each other such that their instant variation would fluctuate through the network and other elements will be affected by this fluctuation simultaneously. Quantum mechanics is a powerful toolkit in describing such phenomena, entanglement, and provides some answers with beautiful mathematics. As pairs or groups of particles get entangled in the language of quantum mechanics, the quantum state of each particle cannot be described independently of the state of the other(s), even when the particles are separated by a large distance. Centuries ago, when the rate of data transfer between markets was low enough that the spatial distance between the markets was truly meaningful, no market could influence other ones instantly and classical mechanics was able to describe the network. Nowadays the concept of distance between markets has no meaning and we have no choice other than changing our perspective from classical to quantum mechanics for describing the state of the network.