“What is Financial Engineering?”
Financial engineering is the application of science-based mathematical and statistical models to make a better decision about managing financial risks, investing, borrowing, lending, and saving. It is the creation of new and improved financial products through innovative design or repackaging of existing financial instruments.
Financial engineers use various mathematical tools in order to create new investment or trading strategies. The new products created by financial engineers can serve as solutions to problems or as ways to maximize returns from trading in the market.