Masters in Math? for trading?
I am finishing up my bachelors in math, and i can start taking grad classes while still working on my bachelors, and it wouldnt take me much longer to get a masters. While there are definite benefits to having a masters, would this give me a leg up in trading at all? and would it be more beneficial to do the masters in applied math rather than pure math? thanks so much
ED Commodities trader from a BB said when they look for jr. traders, they just look for someone who is good with numbers i.e. can add, subtract, multiply, divide big numbers really fast. Not necessarily a quant, but someone that can work very well under pressure with numbers. I don't think having a masters will benefit you much at all.
it will benefit in terms of signalling quant ability, which with a lot of the desks will help you. However, the benefit of the masters program is largely in the idea of giving you another shot at internships and grad recruiting, not really the prestige/stuff you learn.
In the end if there were two exactly the same candidates but one with an Msc and one with a BSc in math, the decision would come down to fit rather than the degrees.
will help a lot (in terms of proving you can do the job and, to a lesser extent, for the knowledge gained) for algorithmic trading or options trading (the only types that people who aren't idiots are interested in doing)
i also think grad level pure math would be a lot less useful. i would go with applied math
No high-level math is required to trade options. I also know alot of very wealthy people who trade things other then options and who don't make use of algorithms. I guess they are idiots in your mind, but they are rich idiots.
getting a bachelors in math helps prove you have the aptitude for the position, obviously, since banks don't hire out of high schools. it's insane to think that getting a masters wouldn't help prove that you have the skills required marginally more so than a bachelors
Getting a bachelors in math signals intelligence, and no doubt a masters would help a little little in that regard tbh, but chances are a lot of the content learned in a math masters will not have applicability.
I was more attacking your sentence that it can help prove you can do the job, which is very false becasue trading is not about mathematical equations.
On my desk (equity derivs), its mostly Econs, Chemisty, 1 CS and a couple who did not attend university.
What traders looks for in hiring is an aptitude to learn and if you have a BSc math with high GPA that is enough to show that.
Exception for quants in which case they will want Phd's anyway.
Having a masters can actually hurt you in rare cases. I know a trader who never hires Masters students because he thinks they do not understand what trading takes. But this is a very care case and probably shouldn't really be used as a reason not to do a Masters, but rather just something to think about.
A masters in pure math won't help at all. I would strongly consider doing an MFE from a good school though if I were you. For example the MSCF from CMU will certainly help you a lot.
if you went to a good school, your bachelors degree should be enough. If not do the MFE not masters in math.
pure math is completely useless. in fact, anything theoretical (by its very nature) is completely useless. sorry to burst your bubble
the fact that you're not smart enough to understand something doesn't make it useless
well, i structure and trade rates products at a BB and i can't remember the last time I used number theory...ass
I trade equity derivatives and I have a BA Econ
Which university?
I would say mathematical knowledge becomes more important the more complex you get. Vanillas you don't really need to know it, it's more of a supply and demand market. Exotic/Structured options (not nec. flow exotics, second gen stuff) and correlation products I think it becomes a lot more relevant because the market is primarily model driven. Do you need to know upper level math to trade them? Probably not, but I feel like my math background has definitely helped me think about risk, particularly when looking at skew, and how to best capture overhedge.
That's my brief 2 cents (pence).
I completely disagree with the general sentiment that advanced math is useless in finance. I think it is one of the most useful things to study in general, whether or not it is directly applicable to certain positions. Studying math teaches you to think analytically, critically, and makes you an excellent problem solver. It certainly isn't the only way to acquire these attributes, but it is a good way to go about it.
As for trading, I agree with Revsly. I'm not a trader, but I have studied advanced derivatives in my MFE, and I know that with certain products, it is pretty difficult to develop intuition about their modeling and pricing without being quite comfortable with stochastic calculus and advanced probability.
The argument made is that an Masters in Math is not necessary and wont add to an application. The mathematical content of a BSc in Maths is enough for 90% of trading roles.
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