Open course in quantitative foundations
Introduction to Quantitative Finance
What is quantitative finance? A free primer on what the field is, what quants actually do in banks, funds and trading firms, and what you need to learn to join them.
What is quantitative finance? It applies mathematics, statistics and computing to financial markets. Quants price derivatives, design trading strategies, measure risk and build portfolios. The field is often described by its tools, which is misleading: the tools are shared, but the questions in a pricing team, a trading desk and a risk department are very different.
What is quantitative finance used for?
Banks use it to price and hedge the products they sell and to hold enough capital against their positions. Hedge funds and proprietary trading firms use it to find and trade statistical edges. Asset managers use it to build portfolios and measure what their managers add. Regulators use it to check that all of the above are not taking risks they cannot carry.
Who should take this course?
Anyone considering a quant career or a quant course who wants to know what the field involves before committing time or money. It is free, takes three hours and ends with a recommendation of where to start.
What you will be able to do
- Explain the difference between pricing, trading, risk and portfolio quants.
- Describe the main model families: stochastic pricing models, statistical trading models and risk models.
- Read a quant job description and say which skills it calls for.
- Choose a sensible next course for your own background.
Syllabus, module by module
What quants do
The four kinds of quant role, the firms that hire them and how the work differs between sell side, buy side and proprietary trading.
Models and markets
A tour of the model families: risk-neutral pricing, statistical forecasting and risk measurement, with one worked example of each.
The toolkit
The mathematics, statistics and programming a quant uses daily, and how much of each a given role needs.
Where to go next
How the Institute's tracks and paths map onto quant careers, and how to choose between the practitioner and researcher paths.
How the certificate is earned
Open courses are not assessed. Each lesson ends with optional self-check questions and worked answers. Completing every lesson earns a Certificate of attendance, which states that the course is not assessed. Read how certification works.
Questions applicants ask
Is quantitative finance the same as financial engineering?
They overlap. Financial engineering usually refers to the design and pricing of financial products; quantitative finance is the wider field, including trading, risk and portfolio management.
Do I need a PhD to work as a quant?
Not for every role. Researcher roles at hedge funds often ask for a PhD; quant developer, risk and many trading roles hire from strong master’s and bachelor’s programs and from industry.