Q: how does a trader decide at what price to buy and sell a security, and at what quantity? How does she hedge?

Note in margin trading, sometimes you have to close out a position at a loss, in order to limit further losses. Also Note an algorithm trading system executes hundreds and hundreds of trades a day.

This is the type of trading domain knowledge a java developer can't acquire in 6 months. Remember we both felt that most domain knowledge required on a java job is trivial and can be acquired in a few months?

Notice my example is a pricing system. Generally, the more math there is, the deeper the domain knowledge. In general, I feel there are 2 types of financial domain knowledge

* Math

* jargons

Jargons are numerous but not too bad. Perhaps up to 200 jargon terms. Nothing compared to what a medical student has to learn in 6 months.

Quantitative usually means math. Financial bookstores always have shelves for the math and the jargon.

## Wednesday, June 10, 2009

### trading domain knowledge -- math^jargon

Labels: z_jobFinTech

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