Potential Outline of Stock Trading Report The main deliverable of the simulation trading game project is a final report.
The objective of the report is to outline the trades made and, most importantly, justify those trades. It does not matter how much money you make or lose but only your reasons for entering into the trades.
Futures and Options Markets
FARE*4240
Winter 2019
Overview of Trading Game Project
Potential Outline of Stock Trading Report Objective
The objective of the simulation trading game is to allow students an opportunity to use derivative instruments to address practical problems in a simulated business environment.
Accessing StockTrak:
We will be using an online simulated trading game to reinforce concepts discussed in class. The program we use is StockTrak, which is a virtual trading site using real-time data from actual market exchanges. You will be given a trading account and are required to make trades on-line using real-time prices throughout the semester. In the process, you will get to experience trading using futures and options, without having to risk any of your own money.
Note that the class code for StockTrak is FARE4240-WINTER2019. Please follow the following lthe ink to register to use StockTrak.
https://www.stocktrak.com/members/registerstudent?className=FARE4240-WINTER2019
Cost of StockTrak:
The cost to using StockTrak is C$40 per student per semester. However, there is no cost for access to StockTrak this year due to the generous support provided by the Student Federation of the Ontario Agricultural College (SFOAC) under the Student Teaching Enhancement Fund (STEF).
Potential Outline of Stock Trading Report and the Trading Game Deliverable
The main deliverable of the simulation trading game project is a final report. The objective of the report is to outline the trades made and, most importantly, justify those trades. It does not matter how much money your make or lose but only your reasons for entering into the trades.
You are required to make NINE trades:
- a) 1 futures trade to hedge a commodity of your choice (passive account),
- b) 3 futures trades on commodities (grains, livestock, metals, etc.),
- c) 1 futures trade on an index,
- d) 1 futures trade on a currency, and
- e) 3 options contracts on stocks or futures.
The report should describe the basis for each trade (i.e., reasons as to why the underlying has been traded, include citations), how did you execute the trade, what were the results, and why those results occurred. It is essential that you justify every trade you placed. Prior to entering a trade, research the commodity so you can justify why you entered into that particular trade. You will want to maintain a journal of articles used for research (The Wall Street Journal, popular press articles, etc.) for the final report. Every time you place a trade on StockTrak, you must use the Trade Notes feature on StockTrak to write a sentence or two providing justification for why you think each order is a good move for your portfolio
(https://content.stocktrak.com/new-feature-trade-notes/).
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