Financial Market Jumps Explained #shorts

Added: 2026-05-24

[00:00:00]Many things in the financial markets don't evolve continuously over time. For example, a news article breaks and all of the sudden for a particular equity prices gap down or up. There is a jump in the price and that can be considered a rare event over a fixed time interval.

[00:00:18]Whatever you specify, that is exactly what we would model with a Poisson distribution.