- Citadel Securities, one of the largest trading firms in the world, released a fall reading list based on recommendations from its traders.
- The books are centered around four topics its team felt traders should read more on: Statistics, game theory, Python, and options and futures.
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If your reading list is looking bare as summer winds down, one of the largest trading firms in the world has you covered.
Citadel Securities, the market maker founded by Ken Griffin, released a fall reading list based on four topics it believes traders should read more on.
The firm, which trades roughly 21% of all US equities volume, asked its traders to recommend books, “that will prepare you to challenge the impossible with the combined knowledge of statistics and coding, as well as a passion for markets,” according to a LinkedIn post.
The result was four books spanning a wide range of topics, touching on everything from a popular programming language to game theory. The suggestions are all highly analytical, which should come as no surprise coming from a firm that prides itself on taking such an analysis-driven approach to everything it does, including hiring interns.
Here are the recommendations:
“Statistics” by David Freedman, Robert Pisani, and Roger Purves
Why Citadel Securities says it’s important: “Continuously challenge yourself to understand the breadth and depth of statistical methods.”
About the book: Originally published in 1978, the fourth edition of the book was released in 2007. Basic statistic theories and techniques are explained using real-world examples.
“Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life” by Avinash K. Dixit and Barry J. Nalebuff
Topic: Game theory
Why Citadel Securities says it’s important: “The principles of game theory help traders understand the potential motivations for other market participants.”
About the book: As explained in the introduction, this book aims to answer one question: How should people behave in society? Co-author Barry Nalebuff went on to co-found drink company Honest Tea while teaching at the Yale School of Management.
“Python for Finance: Mastering Data-Driven Finance” by Yves Hilpisch
Why Citadel Securities says it’s important: “The complexity and volume of data we analyze makes it helpful to be familiar with a coding language such as Python.”
About the book: Python has become an increasingly popular programming language for the finance crowd to learn, particularly among those who lack a computer science background. The book aims to tackle the basics of learning the language specifically for those on Wall Street.
“Options, Futures, and Other Derivatives” by John Hull
Topic: Options and futures
Why Citadel Securities says it’s important: “You’ll want to cultivate both functional and domain knowledge.”
About the book: One of two textbooks author John Hull has written on financial products, the other being “Fundamentals of Futures and Options Markets”. The book, according to its Amazon description, is known as “the bible” for those in business and economics.