GLOBAL FINANCIAL AND CURRENCY MARKETS

INDIVIDUAL ASSIGNMENT – 15% of the final grade

FXGame - Currency Trading Game

Finance is taught more effectively when theoretical rigor is combined with practical applications. An integral part of
the Global Financial and Currency Markets course, the FX trading sessions allow participants to put into practice the
knowledge they have gained during lectures. Students are required to trade a variety of currencies using an online FX
simulation and manage positions using live prices. Exposure to the pressures of a trading environment gives students a
bit of flavor about the industry, whatever their future career path. Following FX markets, and perhaps more
importantly, learning how to take a view on currencies, once comfortable with the theoretical background, means that
students are more useful to their employers than other students with a purely theoretical education.

Instructions for the FX game:

The foreign exchange game can be accessed at https://www.oanda.com/demo-account/login?app_name=SecureSignIn.
It is an online game (that never expires ☺) that participants play individually during the course to enhance their
comprehension of foreign exchange trading.
When you sign up at https://www.oanda.com/demo-account/login?app_name=SecureSignIn, choose fxTrade Practice.
Once you register you have: a username (selected by you); a new password and an account number (both sent to
your email account). Instructions in your email will inform you how to login to your new account (click on the new URL
given).
In order to participate in the game, each student must (1) register at the above site for the FX game, and (2)
provide the instructor with his/her Username and Password in the Report.
The deadline for stopping transactions and closing (squaring) all open positions is January 6, 2023, 23.59.
The game’s initial allocation is US$100,000 in virtual money to trade with, and no new funds should be deposited into
the account. It is forbidden to trade other assets except currency pairs and to increase the leverage (the default
leverage is 10:1).
The students that have already played the Oanda FX Game may use another platform, where you can trade only
currencies. Deadlines and grading are the same.

Grading the game

Each student will receive a mark whose weight is 15% of the final mark and which will reflect
(1) The realized profit/loss – 10 pts.
(2) The extent of the transactions (minimum 20) – 20 pts.
(3) The number of exchange rates followed (minimum 5 pairs, including a soft currency) – 20 pts
(4) The quality of the game write-up each student will provide the instructor with a Strategy paper discussing the
most important decisions made and lessons learned during the game (between 800 to 1,000 words, strongly
recommended to be written as trades are executed). A full transaction history report must be included. – 50
pts.

The Strategy paper must be uploaded in the course Google Classroom platform no later than January 8, 2023,
23.59.
The best performer and the worst performer (in terms of profit realized during the trading) will make a 5-minute
presentation each on the last seminar. Discussions will follow.

Good luck!