You are required to:
(A) Speculate with virtual money on a real internet trading website.
(B) Write a report (maximum of 2,000 words) on their trading experience.
(A) Internet trading game
The Unit Team will provide each student with a free demo account with Easy Forex, an online foreign exchange trading website.
The url for Easy Forex. You will have access to many of the features on the website that actual traders receive, including real-time quotes, news and a variety of charts (though some features that are licensed from third parties are not available on demo accounts).
Please note that the website works best with Internet Explorer. You can download Internet Explorer from the Deakin Software Library:
Each student will be given an account on this website with AUD 50,000 virtual money. The goal of the exercise is simple: to make as much money as possible. Easy Forex provides access to foreign exchange spot markets and forward markets in order for you to perform your speculative activities. The website has a ‘Learn' tab, which contains information on the basics of forex trading. Please take the time to understand how the trading platform works before commencing your trading activities.
All students will receive an email (from the Unit Team) that contains a username and password for an account on Easy Forex within the first week of August 2015. On receiving this, please do not change the settings (i.e. please do not change the email and password on the account).
I would highly recommend that you do not start trading straight away; rather, it would be very useful to spend some time reviewing the features on Easy Forex. Even before you receive the username and password for your account, you can practise trading (and familiarise yourself with the platform) by using the ‘Simulator' that is available in the ‘Learn' section of Easy Forex (you will need to login as a ‘guest').
The foreign exchange market reacts very rapidly to news, so it is highly recommended that you do make it a point to spend a few minutes every day keeping track of how economic variables impact the forex market.
Assessment:
The speculative component of this assignment is marked out of 15. Grades are based on performance in trading, that is, the amount of money (denominated in AUD) in the account when the assignment is submitted.
There is a hurdle requirement to pass this component of the assignment: you must undertake at least 12 transactions (or deals) by the due date of the assignment (17 September 2015) using the demo account provided to you by the Unit Team. For the purpose of this assignment, a transaction is defined as entering into an open position and eventually closing it before submitting the assignment.
You will realise as you commence trading that the foreign exchange market is extremely volatile. Trading in this market is, therefore, a very risky proposition. The purpose of this trading game is not to make you a forex trader (though some of you may find that you have a talent for it). Rather, it is meant to provide you with insights into the functioning of the foreign exchange market, which is best achieved by participating in it.