What is Quantitative Finance? What does it constitute?

Quantitative finance is a combination of economics, accounting, statistics, econometrics, mathematics, stochastic process, and computer science and technology. Increasingly, the tools of financial analysis are being applied to assess, monitor, and mitigate risk, especially in the context of globalization, market volatility, and economic crisis.

It is mathematical finance is applied mathematics that is related with financial markets. Categories involving quantitative finance include :

• Computational Finance
  Development of computational methods and their applications to financial markets, including Monte Carlo, PDE, lattice and other analytical and numerical methods
• General Finance
  Development of general quantitative methodologies with applications in financial markets and economics
• Portfolio Management
  Models for portfolio selection and optimization, capital allocation and investment strategies
• Pricing of Securities
  Models for pricing, hedging and relative valuation of traded securities, their derivatives, and structured products
• Risk Management
  Methodologies for measuring and managing financial risks in trading, banking, insurance, corporate and other applications
• Statistical Finance
  Statistical, econometric and econophysics analyses with applications to financial markets and economic data
• Trading and Market Microstructure
  Models of market microstructure, liquidity, exchange and auction design, automated (electronic) trading, agent-based modeling and market-making