Write a good note on the topic Definition and Overview of Money Engineering

Money engineering is defined as the science of money management in order to maximize returns in the financial markets. It involves the study of the economic, historical, and financial environment in order to identify factors that may impact the value of a portfolio and to develop strategies to mitigate, optimize, or profit from them. Money engineering can involve both traditional asset allocation strategies, and more sophisticated options trading techniques such as volatility arbitrage, options writing, and other derivatives strategies. Money engineering requires an expansive knowledge of the world's various markets and an understanding of underlying economic principles. Numerous tools are used in money engineering, such as Financial Analysis, International Monetary Theory, and Value Investing. A money engineer must also possess an understanding of the myriad of investments available, their individual characteristics, and the risks associated with them. Money engineering is an incredibly complex but also lucrative field. Understanding and predicting the movements of the diverse markets can provide tremendous returns as well as successful risk mitigation techniques.