What is a Quantitative Analyst? Role and Career Path

What is a quantitative analyst?

Quants or quantitative analysts are math addicts who do “tough math” to develop new pricing models, risk measures and hedging systems. These models are then used by traders to assess the value of their financial assets more accurately, and more generally to mathematically manage their operations. Quantitative analysis is the outcome of financial mathematics including probabilities.
Thanks to quantitative analysts, hedge fund traders and managers can manage their portfolios more easily by optimising between risk and possible profitability.

How to become a quantitative analyst

Quantitative analyst is a profession that requires addiction to math, having a logical mind and a love of handling figures is therefore essential. Other skills required are, a good knowledge of IT (C++, VBA), finance and fluent English.
Appropriate training to be a quantitative analyst are from:
• Leading engineering schools
• Leading business schools specialising in mathematics

A quantitative engineer’s salary

As with structurers, a quant’s salary varies significantly dependant on past success. On average they earn:
Between €50,000 and €70,000 + bonuses (20% of salary) as a junior
Between €60,000 and €90,000 + bonuses with experience
Between €80,000 and €110,000 as a senior