In the next section, we briefly describe a market model and its corresponding multi-agent architecture for an electronic financial market. In this project, we propose to simulate an electronic financial market and study coordination and interaction behaviors among multiple intelligent agents. The specific financial market we choose to model is the foreign exchange market. The trading model aims to capture agents' decision making process. We assume that the major goal of each agent is to attempt to gain profit by increasing its holdings while minimizing the potential risks.
Agents make such decisions on how much of a currency to buy or sell.
The factors that may influence an agent to make such decision may include trading history such as the previous price and current holding of assets. In addition, other information such as some critical events that appear in the headline news, the trading behavior of other agents could also be factors that affect an agent's trading decisions. Agents may suffer from a loss through a negative change in his or her holdings. A multi-agent architecture is designed to support agent' decision making process in the foreign exchange market. The proposed architecture provides a testbed that a variety of experiments can be carried out.