The MarketTrader simulation puts the participants in the seat of a trader in a dealing room. During the simulation the participants have to monitor the markets and act on news and price changes, while at the same time give two-way prices and manage position risks.
During the simulation the participants will experience the continuous demands and stresses, the need for rapid responses and disappointments of a typical trading day. They will be required to adapt their views and trading strategies when faced with changing market conditions.
The participants interact with other market players, both real (other participants in the same trading session) and fictive. They trade using a pre-programmed scenario from an actual trading day. However, the scenario can be manipulated from the control panel during the session in order to test various abilities of the individual participants.
Key issues covered
- Dynamics of the financial markets
- Responses to client requests and changes in market conditions
- Risk management
- Liquidity handling
- Profit generation
- Trading strategies and styles of trading
- Handling of market emotions and arbitrage possibilities
- Technical and fundamental analysis
During one trading session, normally lasting between one and two hours, a full trading day is simulated. The length of a session can vary depending on the experience of the participants.
A session can also be stretched to multiple days in order to demonstrate the impact of overnight positions. A first time session typically requires either an hour of pre-simulation e-learning or a 30-minute presentation before the start of the MarketTrader simulation.
After the MarketTrader session, the instructor has the possibility to provide the participants with both general (group) and individual feedback. This feedback session usually takes about 30 minutes.
After each session, a debrief is conducted, including the following:
- Risk and liquidity management profile
- Position(ing) compared to market movements
- Market awareness and reaction to news
- Client service, including response times, pricing accuracy and speed
- Trading style (e.g. market maker vs ‘market taker’)