The best way to learn is by doing. This project involves trading different derivative securities, using different order types and managing investments by using different hedging techniques to minimize your loss. This portfolio simulation allows you to gain this experience without risking actual capital. During this course, you will be required to register for a student trading account with www.stocktrak.com
You are given an initial account balance of $1,000,000 to invest. You can make a maximum of 200 trades during the simulation period of 6 weeks. As we cover various risk management topics and various derivative products, you will be required to base at least one trade on that asset class.
Your portfolio should include each type of derivative asset that we discuss in the course. You should document your trades/motivation in StockTrak throughout the semester using the trade notes feature. These notes will help you write the final report.
This activity represents 20% of your final course grade broken down into the components:
– Rationale, consistency and types of trades made (12%)
– a Trading report as the final course paper (8%).
