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Definition

The analysis of the prices of securities and their derivative instruments with the objective of developing a profitable trading strategy, often using program trading. Quantitative analysis involves the development and implementation of complex computer-based trading systems usually designed to make small profits through arbitrage and other opportunities. Quantitative analysts (or "quants" as they are known) are highly paid specialists with skills in finance, mathematics and programming. They are mostly employed by investment banks and hedge funds.

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