What is Quantitative Finance?

Category: Finance

1Definition

A field using advanced mathematics and statistics to understand financial markets and develop trading strategies.

2Context

Synonymous with quant finance. Professionals typically have PhDs in math, physics, or computer science.

3Example

Quantitative finance uses stochastic calculus to price options and machine learning to predict market movements.

⚠Common Trap

The 'quantitative' part isn't about quantity of money—it's about using mathematical quantities and models.

More Finance Terms

Get clear definitions without the jargon