Chaos Theory can be generally defined as the study of forever-changing complex systems. Discovered by a meteorologist in 1960, chaos theory contends that complex and unpredictable results will occur in systems that are sensitive to small changes in their initial conditions. The most common example of this, known as the "Butterfly Effect," states that the flapping of a butterfly's wings in China could cause tiny atmospheric changes which over a period of time could effect weather patterns in New York.

Although chaotic systems appear to be random, they are not. Beneath the random behavior patterns emerge, suggesting, if not always revealing, order. Recognizing that the stock market is a non-linear, dynamic, chaotic system 's Max Cohen (Sean Gullette) applies the principles of Chaos Theory in order to determine the pattern behind apparent random nature of market prices.

Apart from the stock market, Chaos Theory can be used to model other highly complex systems, including everything from population growth to epidemics to arrhythmic heart palpitations. When applying chaos theory, it is revealed that even something as seemingly random as a dripping faucet has an order behind it.