Should I Learn Python? Finance Professionals | Xccelerate (2024)

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Gone are the days when you had to stare at a computer screen all day, waiting for the numbers to be just right so that you can make your stock trade to optimize your gains. The longer, more time-consuming and exhausting process is on the way out, giving way to programmable strategies that are auto-executed using the popular programming language, Python.

Wondering how? Read on to know more!

Should I Learn Python? Finance Professionals | Xccelerate (1)


What is Python?

Python is a high-level programming language with dynamic semantics which can be used to build a number of applications in various fields. In simple terms, Python is a highly versatile programming language which can be altered to find the perfect fit for said applications.It is also a general programming language which can be used to build web applications, websites or even complex applications. The most important part of Python is its syntax - it is said to be closest to the original mathematics syntax, which makes it quite proficient in playing around with numbers. Though incredibly versatile, Python is ridiculously easy to learn. As an estimate, it should take a beginner with no knowledge of programming about six months to learn Python from scratch.

However, don’t let the terms “basic programming language” take you for a ride for it is still incredibly complex but has a number of real-world applications.


Real World Applications of Python


1. Web Applications & Frameworks

A lot of web applications that you use today are powered by Python. Google App’s search engine is powered partly by Python. The more complex frameworks such as ERP5, which is an enterprise resource planning system used in major industries such as aerospace, banking, etc., are also based completely on Python.

2. Business Enterprises

A lot of businesses use Python to support their product. The biggest application of Python used by billions of users worldwide is YouTube. A number of functionalities on YouTube’s video sharing platform have been made possible only by the use of Python. Another huge platform, Reddit, shifted to a more versatile code by moving its framework to Python in the year 2005.

3. Experimentation/Building Prototypes

Since Python is a free programming language, it is only natural that it is also used for experimentation. Python is widely used to build prototypes and rough applications. The beauty of Python is that it can be used to highly customize these prototypes to provide a desirable user experience.


Applications of Python in Finance

Since Python is such a number-oriented and versatile programming language, it is used widely in the financial sector as well. Surprising? Shouldn't be!

Specifically, it is used in the FinTech sector to build websites and web applications. However, since you would already know that, let’s talk about a few other applications of Python in the finance industry.

1. Banking Software

Python being, well Python, can be used to build highly scalable and incredibly secure banking software applications. Python is used in both online and offline applications which power the banking world. A lot of payment gateways were built and are maintained using Python. In the offline world, ATM software is also developed in Python, since it allows an almost-instant seamless integration of algorithms allowing for faster processing of transactions. Examples: i. Athena, J.P.Morgan’s own pet project is based on Python. Athena is JP Morgan’s own trading software built on Python. ii. Quartz is Bank of America and Merrill Lynch’s joint trading, risk management and position management platform. It was built from scratch using Python.


2. Cryptocurrency Trading

Cryptocurrencies have permeated our financial world like no other concept ever before. Even though most of the major cryptocurrencies are over five years old, they became popular only a couple of years back. Python, being so versatile, is already being used by cryptocurrency traders to execute automatic buy and sell programs.

Should I Learn Python? Finance Professionals | Xccelerate (2)

You can program Python to analyse the past and present pricing data of cryptocurrencies to closely estimate pricing trends. Special Python packages, such as Anaconda are highly suitable for data analytics and have made traders’ lives much simpler and better. A lot of cryptocurrency trading websites currently use Python as an effective tool for gathering historical pricing data, analysing it thoroughly and making future predictions.


3. Automate Stock Trading

Trading stocks is a highly demanding job - it requires analysing thousands of numbers and other data points per day to retrieve any valuable information. Numbers and other number-based data points are incredibly important in optimizing your trades. Python can help you build highly customised strategies and tools that let you execute those strategies just as effectively. Not only does Python help you plot data accurately, but it also lets you use that data to get the most out of each trade.

Let’s take the example of an Arbitrage trade here. Arbitrage is basically profiting off of the difference of prices of one stock/commodity/instrument in two separate markets. It involves buying from one market at a lower price and selling in the other market for a slightly higher price. The profit in an arbitrage trade is the price difference between the two markets in question.

You could use a Python program to analyze the prices of the same commodity/instrument/stock in different markets. This allows you to concentrate on other important things, rather than having to stare at a screen all day, trying to analyze different prices. Your Python program can return the highest and lowest prices across markets in various parts of the world, allowing you to seamlessly make your trade, helping you to pocket the most profit you can.


Why Should You Learn Python ASAP?

Should I Learn Python? Finance Professionals | Xccelerate (3)Python has numerous advantages, especially in the finance industry. From data analysis to cryptocurrency to automatic trading, Python can be lucrative to the finance sector lot. Here are a few more reasons why you shouldn’t delay starting to learn Python:


1. Ease & Readability

Python is arguably the most readable programming language. It has clear, well-defined syntax, which makes it simpler for you to learn it sooner than other languages. Python also has forced indentation which makes your life simpler by making the program appear less complex.

2. A Sense of Fulfillment and Progress

Python is a fairly simple language to learn and use. In Python, most of the learning involves building applications using Python. This helps you track your progress and also gives you a sense of fulfillment.

3. Versatility

After all that we’ve spoken about Python, do we really need to say more? It wouldn’t be an overstatement to say that Python is probably the most versatile programming language today. Its applications are varied and imagining the world without Python would be rather difficult.

4. Resources & Community

Since Python is so widely used, you can find an umpteen number of resources should you encounter a problem. The community of Python users and developers is astronomical and may we add, just as friendly. This is one of the sole reasons you could be learning Python.


The Bottom Line

Python is an incredibly versatile language with a very simple syntax and great readability. It is used for building highly scalable platforms and web-based applications, and is extremely useful in a burdened industry such as finance. It helps you automate quite a few mundane tasks such as collection of data from various points, analyzing them, and drawing useful conclusions.

This beautiful, incredibly versatile programming language is also very easy to learn with the right amount of hard work. Spending an hour a day on Python is more than enough to become proficient in its use. We recommend you start right away!

Knowing how and where to start learning Python can get on your nerves pretty quickly. To save yourself the trouble, join one of Xccelerate's Introduction to Python Course to get started. Already know basic Python? Xccelerate also has advanced courses to help you kick-start your journey with Python in the finance industry.

So get started today!

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Should I Learn Python? Finance Professionals | Xccelerate (2024)

FAQs

Is Python needed for finance professionals? ›

Launch or Advance Your Career

That's because Python is one of the most popular programming languages in finance and finance technology. Programmers use Python to build banking apps, enable economic forecasts, gather and analyze large quantities of financial data, and more.

Can finance professionals learn Python? ›

Python's simplicity and flexibility make it a popular programming language in the finance industry because it makes creating formulas and algorithms far easier than comparable programming languages. Python libraries and tools also make it easier to integrate programs with third parties, a common need in fintech.

How do finance professionals use Python? ›

Using Python, developers can build automated-trading bots that analyze the market data in real-time and make trading decisions based on pre-set algorithms. Python libraries such as NumPy, Pandas, and Scikit-learn offer machine-learning algorithms that can enable predictive analytics in the financial markets.

What Python should I learn for finance? ›

However the real power of Python comes when you start downloading some of the numerous, and freely available, third party libraries. For serious finance work you'll need numpy (to handle operations on large arrays), scipy (advanced statistical and mathematical functions), and matplotlib (data visualisation).

Is Python the future of finance? ›

Python is a popular language for financial modeling due to the wide range of libraries available for data analysis and machine learning. One of the main ways that financial professionals use Python for financial modeling is to build models that forecast financial performance based on historical data.

Why is Python so huge in finance? ›

Python is widely used in quantitative finance - solutions that process and analyze large datasets, big financial data. Libraries such as Pandas simplify the process of data visualization and allow carrying out sophisticated statistical calculations.

What programming language should a finance professional learn? ›

Java is preferable when developing front-end applications because finance and FinTech demand a highly secure system. For instance, Java is still the preferred coding language in the banking sector because it is secure, reliable, and capable of processing enormous volumes of data.

Is Python worth learning for finance reddit? ›

Definitely! I was a Business Analyst in financial services for 10 years and the reason I started programming is because it's so much more powerful than Excel.

What finance companies use Python? ›

Python for Fintech Use Cases
  • Affirm. Affirm is a fintech company that offers point-of-sale loans for online purchases. ...
  • Robinhood. Robinhood is a commission-free trading platform allowing users to buy and sell stocks, cryptocurrency, and more. ...
  • Revolut. ...
  • Stripe. ...
  • Zopa. ...
  • Kensho. ...
  • Stockspot. ...
  • Newable Business Finance.
Jun 15, 2023

Is Python or SQL better for finance? ›

SQL is arguably the most important language for analysts, but it often gets omitted from the list. SQL definitely isn't as sexy as Python, but there are a lot of good reasons to make it your first language. You will learn the basics of how data is modeled, and how to perform all the common transformations.

Is Python a valuable skill in finance? ›

Python is a powerful data analysis tool, making it well-suited for financial reporting, modelling and forecasting. Accountants can use community-supported Python packages to perform complex data analysis, such as predicting price trends and cash flow projections, without needing to code from scratch.

Is Python or C++ better for finance? ›

Python: Python is widely used in finance and FinTech due to its ease of use, flexibility, and large number of libraries and tools available for data analysis, machine learning, and visualization. It is used for tasks such as data processing, modeling, and algorithmic trading.

Is Python necessary for accountants? ›

Python for accountants

It is also widely used for machine learning and data science, making it a valuable skill for accountants as data becomes increasingly important in finance and accounting.

Do you need coding for finance? ›

From the apps you use to do your banking to the development and maintenance of highly complex electronic trading systems, the world of finance runs on programming.

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