What is quantitative finance, and who is it suited to?
Quantitative finance applies mathematics, statistics, computing and economic or financial theory to problems such as pricing assets and derivatives, managing risk, analysing markets and constructing portfolios. It may suit students who enjoy analytical problem-solving, working with data and coding, and are comfortable with probability and abstract mathematical ideas, but course requirements and emphasis vary.
Key points
- Relevant interests may include financial markets, programming, statistics, modelling and data analysis.
- Study can involve calculus, linear algebra, probability, econometrics, numerical methods and computer programming.
- Possible applications include risk management, investment analysis, financial modelling and algorithmic trading.
- Strong communication and critical judgement also matter because models rely on assumptions and imperfect data.
Things to check
- The balance between mathematics, computing, finance and economics differs by programme, so applicants should check the course content and entry requirements in official information.