This eCourse consists of two modules. Module 1 provides a high-level overview of the field of quantitative trading, looking at it from the perspective of both buy-side and sell-side firms. Quantitative trading is a subset of the broader topic of quantitative finance, and covers all aspects of using mathematical methods in trading markets. In today’s world, this generally means using computers to perform the necessary calculations.
Module 2 examines the sell-side market-making business in detail, with particular emphasis on the quantitative and technological requirements and challenges. Sell-side firms are primarily concerned with attracting as much deal flow as possible through making prices to their clients. As such, most of their quantitative efforts relate to improving client access and assessing market liquidity to best differentiate good flow from predatory flow.
On completion of this course, you will be able to:
- Recognise and define the key terminology associated with quantitative trading
- Identify the quantitative trading techniques used by both buy-side and sell-side firms and how differing business models and needs influence the use of different techniques
- List some general quantitative trading techniques that are independent of the buy-side and sell-side distinction
- Recognise the sell-side market-making business model and key elements of this model
- Identify the need for sell-side firms to use on- and off-exchange observation pricing as well as replication pricing models in their business
Module 1: Quantitative Trading - An Introduction
Topic 1: Key Definitions & Terminology
Topic 2: Sell-Side Quantitative Trading
Topic 3: Buy-Side Quantitative Trading
Topic 4: General Quantitative Trading Techniques
Module 2: Quantitative Trading - Sell-Side
Topic 1: Sell-Side Business Model
Topic 2: Pricing