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title:
 
Building a Simulation Model of Foreign Exchange Market: Reproduction of Yen Dollar Market
publication:
 
JCIS-2006 Proceedings
part of series:
  Advances in Intelligent Systems Research
ISBN:
  978-90-78677-01-7
ISSN:
  1951-6851
DOI:
  doi:10.2991/jcis.2006.319 (how to use a DOI)
author(s):
 
Ayako Usami, Ryunosuke Tsuya, Takashi Iba, Hideki Takayasu
corresponding author:
 
Ayako Usami
publication date:
 
October 2006
keywords:
 
Foreign Exchange Market, Artificial Market, Agent-Based Simulation, Econophysics
abstract:
 
The purpose of this study is to make a basic Foreign Exchange Market Model. It is important to make a simple basic model at first to understand the complex emergence of exchange rate which is caused by various factors. The model is a multiagent-based model, consisting of dealer and speculator. Both agents’ action relies on market trend and their personality, either trend follower/ Contrarian. In this paper, the simulation experiments are done by changing the ratio of Trend Follower and Contrarian. As a result, the complex fluctuation of exchange rate can be observed. The validity of this model is evaluated by the effect between the size of fluctuation and probability.
copyright:
 
© Atlantis Press. This article is distributed under the terms of the Creative Commons Attribution License, which permits non-commercial use, distribution and reproduction in any medium, provided the original work is properly cited.
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