Quant Finance Glossary

Essential concepts for quant trading, research, and interviews — explained clearly.

40

Concepts

7

Categories

AllCareer & Interview Prep (6)Trading Concepts (10)Probability & Statistics (6)Options & Derivatives (6)Risk & Portfolio (6)Math Foundations (5)Quantitative Finance (1)
All LevelsBeginnerIntermediateAdvanced

2 concepts

Math FoundationsBeginner

Central Limit Theorem

The Central Limit Theorem states that the sum (or average) of a large number of independent random variables tends toward a normal distribution, regardless of the original distribution shape.

8 min read
Math FoundationsBeginner

Random Walk

Random walk theory suggests that stock price changes are independent and identically distributed, meaning past prices cannot predict future movements — a foundational concept in financial economics.

7 min read

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