Introduction

Understanding the symbols used in quantitative finance is essential for reading research, building models, and communicating with other quants. Below are tables summarizing the most important symbols, grouped by their typical use.

Common Quant Finance Symbols

These are the foundational symbols you'll encounter in statistics, portfolio theory, and risk modeling.

Symbol	Original Name	Name	Meaning	Use
σ	Sigma	Standard Deviation	Risk	Risk models, portfolio theory
µ	Mu	Mean	Expected Return	Return calculations, CAPM, forecasts
α	Alpha	Alpha	Excess Return	Performance attribution, active funds
β	Beta	Beta	Market Sensitivity	CAPM, risk analysis
r	r	Risk-Free Rate	Baseline Return	CAPM, option pricing
ρ	Rho	Rho (Correlation)	Correlation Coefficient	Portfolio construction, risk analysis
Σ	Sigma	Covariance Matrix	Asset Covariances	Portfolio optimization
ε	Epsilon	Error Term	Regression models, residuals
λ	Lambda	Lagrange Multiplier	Optimization problems
V	V	Variance	Measure of Dispersion	Risk models, statistics

Options & Derivatives Greeks

These symbols are crucial for understanding and managing options and other derivatives. They describe sensitivities to various market factors.

Symbol	Original Name	Name	Meaning	Use
δ	Delta	Delta	Sensitivity to underlying price	Options pricing, hedging
γ	Gamma	Gamma	Sensitivity of delta to underlying price	Options risk management
θ	Theta	Theta	Time decay of option value	Options pricing
v	Vega	Vega	Sensitivity to volatility	Options pricing
ρ	Rho	Rho	Sensitivity to interest rates	Options pricing

Other Useful Symbols

These symbols appear in probability, statistics, and general finance contexts. They are often used in formulas and model documentation.

Symbol	Original Name	Name	Meaning	Use
τ	Tau	Tau	Time to maturity	Option pricing, bond math
T	T	Maturity	Maturity date/time horizon	Option pricing, bond math
N()	N	Normal CDF	Standard normal cumulative distribution	Black-Scholes, probability
D	D	Discount	Discount factor	Present value calculations
f(x)	f(x)	PDF	Probability density function	Statistics, probability
p	p	Price	Asset or option price	General finance
q	q	Quantity	Number of units	Trading, portfolio management
w	w	Weight	Portfolio allocation	Portfolio optimization
C	C	Call Option	Price of a call option	Options pricing
P	P	Put Option	Price of a put option	Options pricing

Conclusion

These symbols form the language of quantitative finance. Mastering their meanings and uses will help you read research papers, build financial models, and communicate effectively in the field.