Finance Primer
Understand the instruments, market participants and trading conventions behind quantitative finance models.
Why study Finance Primer?
A model can be mathematically correct and still describe the wrong trade. Understanding cash flows, contract terms and market conventions gives the mathematics something concrete to represent.
Who this is for
For learners with little market experience who want to understand what quants price, hedge and measure.
What you should be able to do
- Explain present value, bonds, equities and derivative contracts.
- Distinguish exchange and over-the-counter markets.
- Understand short selling, margin and collateral.
An example of the work this prepares you for
A comparison of a bond, an equity position and an option, identifying their cash flows, main risks and trading constraints.
Before you start
You should be comfortable with the background covered in these programmes. Equivalent knowledge from university study or independent learning is also suitable.
A preview of the learning journey
The lessons build towards these kinds of reasoning and practical work.
Follow the cash flows
Explain who pays whom, when, and under which conditions.
Read a market quote
Distinguish a quoted price from a return, yield or financing cost.
Understand a trade
Recognise margin, collateral and short-selling constraints.
Members work through the detailed lessons, derivations, worked examples and solutions inside the learning dashboard.
Explore lesson previews by topic
Open a topic preview to see its introduction, learning objectives and prerequisites. Previous and next links let you explore the lessons in study order. Full lessons are available in the member dashboard; selected samples are free to read in full.
Free resources to start learning
Use these alongside the programme or to prepare independently. Start with the introductory material, work through an example, then return to the research papers when the underlying ideas are familiar.
Finance Theory I: lecture videos
MIT OpenCourseWare · Andrew Lo
Watch the introductory, fixed-income and equity lectures for economic context.
Foundations of Financial Engineering
Columbia · Martin Haugh
Use the contracts notes once the basic instrument vocabulary is familiar.
Optional textbook reference
These books are paid references. Check your university or public library for access.
Options, Futures, and Other Derivatives
John C. Hull · Pearson
Optional library reference for contract examples; the textbook is not a free resource.
Links reviewed 14 October 2026. Free refers to the linked reading, notes or videos; printed books and certificates may cost extra.
Find more papers and learning materials in the SelfMadeQuant Directory.
Ready to study Finance Primer? Explore membership for access to the complete lessons.
Explore membership