👉 Market math, also known as quantitative finance, is a field that uses mathematical models and statistical methods to analyze and predict financial markets' behavior. It involves applying concepts from calculus, probability, and linear algebra to understand and forecast asset prices, volatility, risk, and other market dynamics. Key tools include the Black-Scholes model for pricing options, stochastic calculus for modeling asset price movements, and econometric techniques to analyze historical data. Market math helps investors make informed decisions by quantifying risks, optimizing portfolios, and identifying trading opportunities. It's crucial for understanding phenomena like price volatility, arbitrage, and market efficiency, and is widely used in both academic research and practical trading strategies.
