Stock Market algorythm
Posted on 2006-06-05
Does anyone know where I can find information about the kinds of algorythms used to determine current prices on the stock market?
For example, the more people that want to buy a stock, the higher the price goes. But how does the algorythm work that determines how high the prices goes? Why does the stock rise to $1 instead of $1.10?
I'm working on a game that will have a market-like component. As players buy weapons, the price of the weapons will increase for other players and likewise if lots of players sell off, then the price needs to drop. I have a few ideas, but I'd really like to model it after a real market as much as possible?