Hello there:
I realized that in the learning track of automated trading using python and interactive brokers, one of the skills covered is "Finite difference method", now I wonder… how can the finite difference method can be useful in autometed trading??
What course exactly covers this as a skill to be used in automated trading??
Hi Ghery,
The finite difference method uses a set of discrete difference equations to arrive at the fair price of an option. This can be an alternative to the Black Scholes model of option pricing. Thus, you can use it in the world of options trading and further automate your strategy.
Currently, this method is covered in "Options Trading Strategies In Python: Intermediate" which is not part of the learning track that you have mentioned. Thanks for pointing it out and we will fix this