Beyond the Boundaries of Rationality: Evidence from Risk Management Reconstruction of the USA Future Markets

Xinyi Li

2025

Abstract

As a powerful supplement to traditional finance, behavioural finance emphasizes the essential role of investors' irrational behaviour and market psychology in market price fluctuations. This article summarizes the application of behavioural finance in risk management in the US futures market, especially the practical application and theoretical discussion of the futures market in flash crashes, margin calls caused by EMH failure, and position limits. This research teases out the latest progress in these research fields, proposes the necessity of introducing behavioural finance perspectives into risk management, and summarizes the main research hotspots in this field, including investor sentiment, market manipulation, and irrational factors of market efficiency. Based on comprehensive analysis, this paper further proposes the direction of optimizing risk management methods in the future, especially in the context of using emerging technologies such as artificial intelligence and big data, how behavioural finance can promote the reconstruction of the risk management paradigm in the futures market.

Paper Citation

in Harvard Style

Li X. (2025). Beyond the Boundaries of Rationality: Evidence from Risk Management Reconstruction of the USA Future Markets. In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML; ISBN 978-989-758-775-7, SciTePress, pages 23-29. DOI: 10.5220/0013832100004719

in Bibtex Style

@conference{iceml25,
author={Xinyi Li},
title={Beyond the Boundaries of Rationality: Evidence from Risk Management Reconstruction of the USA Future Markets},
booktitle={Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML},
year={2025},
pages={23-29},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013832100004719},
isbn={978-989-758-775-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML
TI - Beyond the Boundaries of Rationality: Evidence from Risk Management Reconstruction of the USA Future Markets
SN - 978-989-758-775-7
AU - Li X.
PY - 2025
SP - 23
EP - 29
DO - 10.5220/0013832100004719
PB - SciTePress