Welcome to the homepage of Michigan State's Quantitative Finance Association. Please takes some time to look around and explore the other pages. We are currently working on this site so you might find that some of the pages are blank, please overlook these and excuses our messiness. To begin, we suggest looking at the questions below to get an introduction to the world of Quantitative Finance, to get the answer to the questions, flick on the question and read the paragraph that appears.
Quantitative Finance is a broad term that encompasses a variety of career paths. Synonymous phrases include mathematical, or computational finance, financial engineering, etc. Quantitative Finance aims to utilize mathematical, statistical, and computational techniques to price derivatives, manage risk, optimize portfolios, and predict market movements. Essentially, applying quantitative skill to financial markets.
What a quant does in his daily routine can vary between each different type of quant. For example, a quant could validate financial models, develop new trading strategies and implement them on a trading platform, or perform research on novel way to price exotic derivatives. To this end, quants must be equipped with the proper mathematical, statistical, and computational abilities in order to go about their day to day tasks.
Much like the term Quantitative Finance, a “Quant” can refer to a range of positions held at various institutions. Per Mark Joshi in “On Becoming a Quant”, there are six sorts of quants: Front Office/Desk, Model Validating, Research quant, quant developer, statistical arbitrage quant, and a capital quant. Provided below is a link to “On Becoming a Quant”.
Sampling 5 of the 30 top programs (according to quantnet.com), the average full-time employment placement is 97.4%. Therefore, students in Quant programs are certainly finding jobs after graduation. According to Investopedia, “Demand for quants is high and driven by multiple trends [such as] rapid growth of hedge funds and automated trading systems, increasing complexity of both illiquid and liquid securities, need to give traders, accountants, and sales reps access to pricing and risk models”. Quants are typically paid much higher than the national average, with an average salary of $97,884 per year (according to glassdor.com).