TL;DR
Derangements: Permutations where no element appears in its original position. This concept is essential for quantitative trading interviews and is frequently tested at top firms.
By Valenke Exam Prep Team·Last updated 2026-06-01
Combinatorics
Derangements
Permutations where no element appears in its original position.
A derangement is a permutation of elements where no element remains in its original position.
The number of derangements satisfies:
For large , .
Intuition: Start with the inclusion-exclusion principle. Let be the set of permutations where element is fixed. Then . By inclusion-exclusion, this gives the alternating sum above.
When to use: Problems asking "how many ways can items be rearranged so that none is in its original position?" — secret Santa problems, misdelivered letters, hat-check problems.
Alternative approach: You can always derive from scratch using inclusion-exclusion on the full permutation set. The formula is a shortcut.
First few values: .
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