Financial engineering

Abstract

Financial Engineering is the term used to describe the use of engineering and mathematical methods and tools to solve financial problems. This includes, but it is not limited to, the mathematical analysis of the market, the modeling of its behavior, and eventually the use of optimization methods on this model. The goal of the financial engineer is to generate a system that uses such models and optimization methods to aid a trader in his decisions for trading in the market. More recently, the generation of completely automated systems that are able to make complex investment decisions, and act on these decisions independently, has also become popular.