What does a Financial Engineer do?

Financial engineers use mathematical formulas, programming, and engineering methods in economic theory and analyze market trends to build data-backed financial models. They create concise and trustworthy financial products by using complex statistical calculations to inform their models. They design effective trading or pricing models using their newly-acquired market data quantitative analysis from the information provided by their models.

Financial engineers use their vast in-depth knowledge to formulate desirable investment plans by creating reasonably accurate market behavior simulations and relaying their findings to clients. They may also use their skills to generate data algorithms, determine product directions, and create volatility models by comparing trading venues and using software like KDB/Q. Financial engineers need a minimum bachelor’s degree in economics, statistics, computer science, or related fields.

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Average Years of Experience

0 - 1
13%
2 - 4
56%
5 - 7
29%
8+
2%

Financial Engineer Seniority Levels

Quantitative Analyst
29% made the transition
Research Assistant
23% made the transition
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Financial Engineer Salaries

Average Base Pay

£27,509 /yr
Same as national average
Not including cash compensation
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£16K
Median: £28K
£48K
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Glassdoor Estimated Salary

Financial Engineer jobs

Financial Engineer Interviews