Master of Quantitative Finance

A master's degree in quantitative finance is a postgraduate degree focused on the application of mathematical methods to the solution of problems in financial economics. There are several like-titled degrees which may further focus on financial engineering, computational finance, mathematical finance, and/or financial risk management.

In general, these degrees aim to prepare students for roles as "quants" (quantitative analysts); in particular, these degrees emphasize derivatives and fixed income, and the hedging and management of the resultant market and credit risk.

Formal master's-level training in quantitative finance has existed since 1990.

The program is usually one to one and a half years in duration, and may include a thesis component. Entrance requirements are generally multivariable calculus, linear algebra, differential equations and some exposure to computer programming (usually C++); programs emphasizing financial mathematics may require some background in measure theory.

Initially, the curriculum builds quantitative skills, and simultaneously develops the underlying finance theory:

The components are then integrated, addressing the modelling, valuation and hedging of equity derivatives, commodity derivatives, foreign exchange derivatives, and fixed income instruments and their related credit- and interest rate derivatives; see Mathematical finance § Derivatives pricing.

Programs often include dedicated modules in market risk and credit risk, with some degrees offered as specialized “Masters in Financial Risk Management”; the techniques covered are value at risk, stress testing, and "sensitivities" analysis, and in parallel, the Basel capital / liquidity requirements. Increasingly, programs include quantitative portfolio management and -optimization; see Outline of finance § Quantitative investing and § Portfolio theory. Recently, topics (or specializations) in data science and machine learning are becoming common.

The title of the degree will depend on emphasis, the major differences between programs being the curriculum's distribution between mathematical theory, quantitative techniques and financial applications. The more theoretically oriented degrees are usually termed "Master's in Mathematical Finance" or "Master's in Financial Mathematics" while those oriented toward practice are termed "Master's in Financial Engineering" (MFE or MSFE), "Master's in Computational Finance" (MCF or MSCF), or sometimes simply "Master's in Finance" (MFin). "Master's in Quantitative Finance" is the more general degree title, although "MQF" degrees are often less theoretical and more practical. The practice oriented programs are often positioned as professional degrees (and in the United States, are sometimes offered as Professional Science Master's). Programs are sometimes offered as a Master of Engineering, or as a Master of Operations Research.