A lack of clear understanding of different quant roles, requirements, and job duties could cost you high-flying career in the most promising area of financial services that’s not restricted by headcounts while demand for quant rises.
This article demystifies the 4 key areas of quant positions in finance with the career progression and the top roles across #hedgefunds #hftand #quanttradingfirms that you can target:
✅Quantitative Trader: Designs algorithms to maximise alpha or returns above standard market fluctuations. You’ll need expertise in econometrics, statistics, or machine learning for building/ testing/ training algorithms.
✅Quantitative Researcher: Focus on new approaches to market returns and pass their work to financial engineers or quantitative developers for implementation. While companies like #janestreettend to hire mathematicians or PhD holders in stochastic calculus working on applied roles, students can
✅Financial Engineer: Often referred to as "quantitative analysts," financial engineers figure out how to correctly price products sold by sales teams. This involves stochastic calculus, risk-neutral pricing, and model implementation. They often work within #fixedincomeand #forexasset classes, where derivative products are common.
✅Quantitative Developer: There are two types of quantitative developers. The first type collaborates with other quantitative analysts to implement and optimize their financial models. The second type works with financial pricing data and trading systems architecture, setting up the infrastructure for quant analysts/traders to run their models.
✅High-Paying Role: Star C/C++ Developer Star C/C++ developers with skills in Unix network programming, low-latency systems, and Linux Kernal are highly sought after for ultra #highfrequencytradingwith base salary packages of $250k and up.
Sell side vs Buy Side Quants
Sell-side Quants- Focus more on rigorous mathematics fields (Itô calculus/ numerical approximations/ differential equations), even targeting physics students.
Buy-side Quants- Stronger background in computer science, actuarial science, electronic engineering, and, to a lesser degree, economics with a focus on mathematical modeling.
Compensation: Starting salaries for both range from $80,000 to $120,000, but certain buy-side roles do get paid higher, and thus are more attractive.
Sell-side quants have been switching to buy-side institutions and roles. This is not only because of higher future expected salaries but due to the overall dynamism of the sector.
#hedgefunds and #proprietaryfirmsare shifting from fundamental to #quantitativeinvesting with research in systematic trading evolving fast!
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