Alternative The foreign exchange market (Forex,FX,or currency market) is the trading of international currencies. It is one of the most liquid financial markets in the world, with an approximate daily turnover of US$4 trillion. With the exception of weekends, a wide variety of buyers and sellers trade around the clock as the market is open […]

We propose a theory of large movements in stock market activity. Our theory is motivated by growing empirical evidence on the power-law tailed nature of distributions that characterize large movements of distinct variables describing stock market activity such as returns, volumes, number of trades, and order flow. Remarkably, the exponents that characterize these power laws […]