Financial engineering is a field where people with knowledge of all trades are required.

The core importance is handling finance and knowing all the finances.

The person needs to have a little bit of look into economic theory, mathematics, computer science and statistics.

If all this sounds interesting to you, then it is the right field for you.

There are always two things that come up in mind after selecting the field that you want:

The first thing is the options that you can pursue in financial engineering and the second thing about the pay that you’ll be getting after the course.

What financial engineers do?

Financial engineering
source: engineering.nyu

Financial engineers go through the market of the financial markets and analyse the volatility of the market.

They go through the information about the financial market and try to predict the market behaviour and information about the finances. The predictions are mostly on point but not accurate all the time.

The financial engineers know the financial market, theories and also about the applied mathematics and programming.

They also have a list of statics and information about market behaviour in the financial world.

Financial engineering- Career goals:

Financial engineering
source: alvcoaching

The financial engineers work in financial analysis and risk management, so let’s look for the possible fields that the financial engineers can work in:

  • Valuation of options

  • Corporate finance

  • Trading

  • Risk management

  • Financial regulations

  • Portfolio management

  • Derivatives pricing

  • Execution

Some skills that are needed by the financial engineers if they want to pursue this field:

Mathematical skills:

Financial engineering
source: edu.rsc

Training in mathematics doesn’t mean just knowing a few basic concepts because to perform better, and you need to gain more knowledge about it. The more information and knowledge you have the better understanding you will have in the field.

Make sure you are aware and expert in these topics:

  • Game theory

  • Linear algebra and differential equations

  • Calculus

  • Probability and statistics

  • Numerical linear algebra

Financial skills:

source: td

It is the core subject for this field because if your financial skills are strong, then you will succeed in this field.

There are some theories and applied finance that you need to be aware of if you are going to pursue financial engineering. Once you are clear about the basic finance, then you can go and understand the depth in the finance world.

If you want to become a financial engineer, then here are some things that you need to master:

  • Portfolio theory

  • Financial modelling

  • Fixed income

  • Accounting

  • Monte Carlo techniques

  • Knowledge of credit risk products

Computer skills:

Financial engineering
SOURCE: lifehack

Computer skills are the most important part because it will be a daily requirement if you become a financial engineer.

Here are some terms that you need to master and know more about in computer programming:

  • C++

  • Excel

  • Data mining

  • Big data modelling

  • Object-oriented programming

  • VBA macros

  • Python

  • Java, .NET

The pay scale for a financial engineer depends on two factors one is the time and experience that the person has in the field and the second one is the geographic location.

The more experience you have in the field, the higher the pay will be and it the skills and efficiency you have will also play a big role.

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