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Sunday, January 24, 2016

What is Financial Engineering?

Financial engineering is the field which is collected from different major fields like  finance, computer science, statistics and mathematics. In simple words, in financial engineering, financial engineer can try to best to solve finance problems with the help of maths rules. So, deep knowledge of both is must.

Banks, insurance companies, mutual funds agencies, stock market traders and hedge funds companies need financial engineer because they face big finance problems and they are interested to utilize the expert knowledge for solving their finance problems.  These finance problems may relating to risk management, financial structure, portfolio management and big investment decisions. Financial engineer is also called financial Quant. Full form of Quant is quantitative analyst.

There are lots of universities which provide the master degree of financial engineering and Financial mathematics. Master degree of FE course fees is between $24000 to $35000.

If anyone is learning about financial engineering, he or she has to learn following things

1. Probability for finance problems
2. Software for finance purpose
3. Advance risk and portfolio management
4. Market and credit risk management
5.Statistics for finance
6.Interest rate models
7.The Volatility Surface
8. Time series Analysis
9. Algorithmic trading
10.Data science in finance
11. C++
12. Calculus
13. Linear Algebra


Thank You

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