By Milind Paradkar
The advent of algorithmic trading in the late last century caused a massive tectonic shift in the way trading took place in exchanges worldwide. Be it trading in stocks, derivatives, Forex or commodities, trading firms worldwide adopted algorithmic trading in a big way.
The last couple of decades have seen an exponential growth in the algorithmic trading market and it continues to grow at a significant pace. According to the “Global Algorithmic Trading Market 2016-2020” report published by Research and Markets last year, the global algorithmic trading market is expected to grow at a CAGR of 10.3% during the period 2016-2020.
In order to remain competitive (more…)
Business world is an intense and competitive field. An MBA degree can help develop skills that can be used in a number of situations. In a dramatic shift versus a decade ago, technology jobs are just sought as roles in finance. MBA’s are proving that they can make a difference as leaders in many different industries.
In the below list we try to help these MBA’s with courses and programmes to do after getting their MBA degree. Any list does involve a certain bit of subjectivity and thus it will never be perfect. Despite all this one must attempt to create a list. After all, a list helps us in the simplest way to know why we decide to take a certain action. (more…)
By: Brandon Msimanga
One might consider Hedge Funds and Hedge Fund management to be risky business which begs to differ why anyone would find a job at a Hedge Fund to be an appealing prospect. However when it comes to working at Hedge Funds the high risk does come with an unusually high compensation in the form of a very attractive monthly pay cheque. (more…)
A position in risk management is intellectually stimulating. After the market downturn of 2008 risk management has gained prominence in terms of growth as well as financial reward. Career path begins as a risk analyst and can take various routes depending upon the industry type and exposure. Some of the domains that offer risk manager’s positions are insurance companies, banks, asset management companies and corporate finance. (more…)
by Anupriya Gupta
Being a pioneer in the field of algorithmic trading education, we often get queries like why should I do this certification? How will it benefit me? Is trading right for me? Many who come up with such queries are students from various fields of study and particularly from engineering and mathematical backgrounds. We will try to address some of these frequently asked questions. (more…)
by Sameer Kumar
HFT is generally divided into three categories – Arbitrage, Execution Strategies, and Non-Arbitrage or Quantitative Strategies.
Major HFT Strategies
- Arbitrage Strategies involves pair(s) of stock/securities which can be traded profitably with minimal risk.
- Execution Strategies are mostly done by brokerage houses which are trying to capture either spread or minimize impact cost, or something similar for the client.
- Quantitative Strategies are a wide domain which encapsulates almost everything else. Market Making would be a popular example in this category.
Banks and brokerage houses like ICICI Securities and Kotak Bank in India would be the employer in the Execution Strategies category. They would expect you to write/modify the existing code for VWAP/TWAP etc. Knowledge of these strategies, along with market microstructure and programming skills would be essential to perform well in this role.
While the broad contours remain the same, this post is written from Indian market perspective.
HFT is an extremely technical discipline and it attracts the very best candidates from varied areas of science and engineering – mathematics, physics, computer science and electronic engineering. While in the US, they usually look at Ph.D. in CS or physics/maths or an MFE degree, it’s not so much in India. In India, an engineering degree in CS/Maths or MBA in finance from a reputed college along with your zeal for problem-solving and coding can give you a fighting chance to land up quant analyst or a quant developer job in an HFT firm. While the degree makes the resume presentable, it’s not the barrier. If you have done lots of work and have something to show for in your resume, the industry recognizes it. But be aware that getting a quant analyst or a quant developer job will take a significant investment in terms of study and effort.
by Anupriya Gupta
Changing market structure – and the emergence of Financial Engineering
With the fast changing global scenario and increasing competition, large financial banks and brokerage houses are faced with the need to develop customized solutions and complex models to tackle niche and difficult client problems. These led to the creation of a new discipline – Financial Engineering; and thereby demand for a new breed of professionals. Being a nascent and highly paid field, more and more people are trying to acquire requisite knowledge and skills and move to this profession.
Growth of financial engineering courses across all segments
In the wake of the above, there has been a surge of financial engineering courses in India being offered by various colleges and institutions at different levels. These finance courses target students/professionals at different points: intermediate, graduation, and even after post graduation and provide degree/ certificate in financial engineering. In addition, some of them are also offered as skill development programs for working professionals. (more…)