Quantitative Finance, Statistics, Mathematics, Probability, Trading.
martingale, let’s first define stochastic process. As mentioned, a stochastic process describes the quantity of something over time, and hence it is convenient to denote it as {X(t), t≥0} with t as time. If the quantity is X(t), then we may have something like X(0)=0, X(1)=0.1, X(2)=0.2, … and so