Computational finance
Encyclopedia : C : CO : COM : Computational finance
Computational finance (also known as financial engineering) is a cross-disciplinary field which relies on mathematical finance, numerical methods and computer simulations to make trading, hedging and investment decisions, as well as facilitating the risk management of those decisions. Utilizing various methods, practitioners of computational finance aim to precisely determine the financial risk that certain financial instruments create.
Areas of application
Areas where computational finance techniques are employed include:- Investment banking
- Corporate strategic planning
- Securities trading and risk management
- Derivatives trading and risk management
- Investment management
Major contributors
Some major contributors to computational finance include: This is a field of knowledge that was traditionally populated by PhDs in finance and physicists and mathematicians who moved into the field. It is drawing the attention of actuarial science graduates or computer science graduates with a strong mathematical background.See also
External links
- [Financial Mathematics, Computational finance and Risk Management]
- [An Introduction to Computational Finance without Agonizing Pain]
- [vbnumericalmethods.com] Excel VBA code for finance applications.
- [Computational Finance and Economics Network, IEEE Computational Intelligence Society]
- [Introduction to Computational Finance, IEEE Computational Intelligence Society Newsletter, August 2004]
- [Numerical Techniques for Options]
- [Monte Carlo Simulation of Stochastic Processes]
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