Difference between Mathematical Finance and Financial Engineering


Mathematical finance can be defined as arithmetic, which is mainly applied in the financial sector. It is a major part of computational finance. However, Financial Engineering is concerned with solving financial problems using the principles of Engineering. A financial engineer should have detailed awareness in financial economics and mathematical tools. These professionals also need to use software principles while making solutions.

Mathematical finance courses and career opportunities

There are different undergraduate, postgraduate and research programmes of study in mathematical finance. Those who are really good in Mathematics can opt for the Mathematical finance courses. The career opportunities for these professionals are exceeding day by day. The candidates who have acquired detailed knowledge in mathematical finance can work as Mathematics Modeler, Financial Statistician, Actuary or Quantitative Analyst. Actuaries are one among the highly paid professionals in the country. The job profile of these Mathematical finance professionals include making calculations, formulating policies, making estimates, etc.

Financial Engineering courses and career opportunities

The candidates who have completed their graduation can opt for the Post graduation Financial Engineering programs. Excellent opportunities are prevailing for these professionals in banking and insurance sector, engineering consultancies and security trading. The scale of pay will be purely based on their caliber and performance. They need to attain a target every month. In addition to other allowances, they may get such high salaries of about Rs. 50000/- to 60000/- per month.

Key differentiators

The mathematical finance professionals mainly do the calculations on risk involved in a particular scenario. They need to make solutions by formulating mathematical ways of managing risk. They measure risk using data samples and complex algorithms. But, the Financial Engineer use engineering principles like mathematics, finance and computer models in order to make management decisions. In different pricing and currency options like equities, bonds, etc, financial engineering is widely used.



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