Frequently Asked Questions

Complete User Guide

Welcome to our investment simulator. This will be an overview on the different pages, navigation, and what features are available to all users. Video Tutorials If you prefer to watch short video tutorials on different parts of the site and trading, you’re in luck!   Navigation There are two main places to navigate, both of which have completely different information available. User and current contest … Continue reading Complete User Guide »

Covered Call

Business chart with glowing arrows and world map

A covered call is an options insurance strategy where you simultaneously have an open position on a stock and sell a call option for the same symbol. Adding a short call in your open positions means that you are obligated to sell your stocks at the strike price contingent on the option buyer. However, you already have the stock in your open position, which means … Continue reading Covered Call »

Covered Put

Business chart with glowing arrows and world map

A covered put is an options insurance strategy where you simultaneously have a short open position on a stock and sell a put option for the same underlying option. Adding a short put in your open positions means that you are obligated to buy your stocks at the strike price, contingent on the option buyer’s actions. However, you already have the short stock in your … Continue reading Covered Put »

Floor

Business chart with glowing arrows and world map

A floor is an options insurance strategy where you simultaneously have a long open position on a stock and a long put for the same underlying asset. Adding a long put to your open position means that you are obligated to sell your stock at the strike price. The long put ensure that you can sell your stocks at a defined price. Since you already … Continue reading Floor »

Cap

Business chart with glowing arrows and world map

A cap is an options protection strategy where you simultaneously have a short position on a stock and a long call for the same underlying asset. Adding a long call to your open position means that you are obligated to buy your stock at the strike price. However, you already have a short position on the asset, which means this call option will help you … Continue reading Cap »

Bull Spreads

Business chart with glowing arrows and world map

A bull spread is a strategy where you simultaneously buy a long call at Strike Price 1, and sell a call for Strike Price 2. Recall that users will pocket the premium should the option not be exercised. By selling a call with a higher strike price, users can reduce their total transaction costs and create a strategy that can generate a fixed income like … Continue reading Bull Spreads »

Bear Spread

Business chart with glowing arrows and world map

A bear spread is a strategy where you simultaneously sell a put at Strike Price 1, and buy a put at Strike Price 2. Recall that users will pocket the premium should the option not be exercised. By selling a put with a lower strike price, users can reduce their total transaction costs and create a strategy that can generate a fixed income like in … Continue reading Bear Spread »

Box Spreads

Business chart with glowing arrows and world map

A box spread is an option strategy that is created by combining the components of the bull spread and the bear spread. By creating a box spread, you are creating a neutral riskless position that generates a return like a bond. A box spread can be used to borrow or lend funds. What are its components? A box spread has four components: Long call at … Continue reading Box Spreads »

Ratio Strategy

Business chart with glowing arrows and world map

A ratio is an option strategy that is created by having X amount of call options at Strike Price 1 and shorting Y amount of call options at Strike Price 2. By creating a ratio, you are creating an option strategy where you can reduce your total option costs by shorting more call options are a higher strike price. What are its components? A ratio strategy has four components: … Continue reading Ratio Strategy »

Collar Spreads

Business chart with glowing arrows and world map

A bullish collar is a protection strategy where you simultaneously buy a call at strike price 1 and sell a put at strike price 2. This strategy is for investors who has a bullish perception on the underlying asset. We can also create a “bearish” collar by simultaneously buying a put at strike price 1 and selling a call at strike price 2. What are … Continue reading Collar Spreads »

Straddle

Business chart with glowing arrows and world map

A straddle is a volatility bet where you simultaneously long a call at Strike Price 1 and long a put at Strike Price 1. This creates a triangular shaped payoff and profit graph where the reward is based on the volatility of the stock. Traders can also bet against volatility by shorting a call at Strike Price 1 and selling a put at Strike Price … Continue reading Straddle »

Strangle Spread

Business chart with glowing arrows and world map

A strangle is a volatility bet where you simultaneously long a call at Strike Price 2 and long a put at Strike Price 1. You will notice that the difference with a straddle is the difference strike price for the long call. By buying a call with a higher strike price, you are buying a cheaper call, thus reducing the transaction costs. A strangle has … Continue reading Strangle Spread »

Butterfly Spreads

Business chart with glowing arrows and world map

A butterfly is a volatility bet that the trader can implement to protect against large fluctuations, or to gain on volatility. You will notice that a butterfly is almost like a straddle, with a difference in the edges. The traders can add additional contracts to his/her strategy to reduce the risk of large losses or gains for more protection.  A butterfly can be executed in … Continue reading Butterfly Spreads »

Spots Trading FAQ

Simulator Spot Trading Spots are very easy to trade (if your contest allows it). Simply choose the action like you would with a stock, select the quantity and the spot you wish to trade from the dropdown from the . Trading Details There are a few things to note with spot contracts: Types There are 3 major types of spots, all of which will be … Continue reading Spots Trading FAQ »

Bonds Trading FAQ

Business chart with glowing arrows and world map

Trading Bonds If they are allowed in your contest, you can use the . Simply select the bond you want to buy or sell, how much you want to buy, and trade! Notes for trading bonds: All bonds, corporate and treasury, that we support are in one master list. We only have US bonds You cannot short bonds You can only use market orders We … Continue reading Bonds Trading FAQ »

Options Trading FAQ

Trading Options If options trading is allowed in your contest, you can use the . Trading options on your simulator is easy but there a few differences between the real world and a simulator. To trade options start by going to the Make a trade => trade options tab. Simple or Spread: Simple is for one option whereas a spread will allow you two options … Continue reading Options Trading FAQ »

Future Options Trading FAQ

Trading Future Options acts like trading a normal option, but replacing the underlying stock with an underlying future. If your class or contest allows it, you can trade them from the . Trading Pit Parts of the trading pit: Action – Only “Buy” and “Sell” is available for future options (you cannot write a future option) Quantity – Remember, like stock options, your quantity will … Continue reading Future Options Trading FAQ »

Future Options

Business chart with glowing arrows and world map

Future Options are exactly what their name implies – an option on a futures contract. Futures and Options – Related Derivatives Futures and options are both derivatives – meaning a security whose value solely depends on the value of the underlying asset. A future derives its value from the commodities or currencies which it represents An option derives its value from the underlying stock Futures … Continue reading Future Options »

Futures Trading FAQ

Business chart with glowing arrows and world map

If your contest allows trading futures, you can find them on the . Action: Here you can select: Buy, sell, short, cover just as you would for stocks. Quantity: Enter the quantity desired of options contracts. Remember even with 1 futures contract you can have huge exposure depending on the contract size. Always look at the volatility and contract size of the future you are … Continue reading Futures Trading FAQ »

Futures Contract Specs

Business chart with glowing arrows and world map

Symbol Month Margin Multiplier Description Exchange Indices Z. HMUZ 5500 10 Dow Jones CBOT ES HMUZ 3850 50 e-Mini S&P 500 (Globex) CME ND HMUZ 12100 100 Nasdaq 100 CME NIY HMUZ 3400 5 NIKKEI 225/Yen CME NQ HMUZ 2420 20 e-Mini Nasdaq 100(Globex) CME TR HMUZ 5280 100 Russell 2000 Mini Index ICE SP HMUZ 19250 250 S&P 500 CME D. HMUZ 2750 5 … Continue reading Futures Contract Specs »

Futures Expiration Calendar

Grains Contract Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Wheat 08/31 11/30 02/28 04/28 06/30 Corn 08/31 11/30 02/28 04/28 06/30 Soybeans 08/31 10/31 12/30 02/28 04/28 06/30 07/31 Soybean Meal 08/31 09/30 11/30 12/30 02/28 04/28 06/30 06/29 Soybean Oil 08/31 09/30 11/30 12/30 02/28 04/28 06/30 07/31 Oats 08/31 11/30 02/28 04/28 06/30 Rough Rice 08/31 10/31 12/30 … Continue reading Futures Expiration Calendar »

Basic Option Strategies

There is an infinite number of strategies that can be used with the aid of options that cannot be done with simply owning or shorting the stock. These strategies allow you select any number of pros and cons depending on your strategy. For example, if you think the price of the stock is not likely to move, with options you can tailor a strategy that … Continue reading Basic Option Strategies »

Creating Option Straddles

A straddle is an investment strategy that involves the purchase or sale of an option allowing the investor to profit regardless of the direction of movement of the underlying asset, usually a stock. There are two straddle strategies, a long straddle and a short straddle. How to create a Long Straddle position A long straddle involves a long position, where an investor purchases both a … Continue reading Creating Option Straddles »

Mutual Fund Trading FAQ

When trading mutual funds on this system, there are a few differences to keep in mind compared to trading stocks. Trading Tip 1: Quantity = Dollars! Unlike stocks, where you specify the number of shares you want to purchase, with Mutual Funds you specify how many dollar’s worth a mutual fund you want to buy. This means if you want to buy $10,000 worth of … Continue reading Mutual Fund Trading FAQ »

Option Spreads

Options Spreads are option trading strategies which make use of combinations of buying and selling call and put options of the same or varying strike prices and expiration dates to achieve specific objectives (hedging, arbitrage, etc.). Option spreads are complex trades, but you can place two “legs” simultaneously using this trading platform. Trading Option Spreads To trade an option spread instead of a simple option trade, … Continue reading Option Spreads »

Finding Stocks In Specific Sectors

Business chart with glowing arrows and world map

If you’ve started buying a few stocks, you will probably be interested in diversifying your portfolio between various sectors. This sounds easy, but it can be very challenging finding stocks from a wide range of sources that fit what you’re looking for. Thankfully, our has all the information you need to get started. First, head to the Quotes page and click “Markets” at the top: … Continue reading Finding Stocks In Specific Sectors »

Transaction History

Your will show you all the orders you’ve placed that have gone through. Features Everything on this page is used to help you see your previous transactions. Action Button This will take you back to the trading page, set to repeat this action. This button will not fully pre-populate an Options order (particularly expired options), or Future Options. Symbol This is the symbol of what … Continue reading Transaction History »

Closed Positions

Your will show an estimated profit and loss from all positions you’ve “Closed” (bought then later sold, or shorted and later covered). Disclaimer The most important note about your Closed Positions is that it is only an estimate, and nothing on this page is used to calculate your portfolio value. Inaccuracies are usually caused by buying and selling the same security multiple times without fully … Continue reading Closed Positions »

Open Positions

You can find your Open Positions page in two places: your , or your page. The only difference between the two pages is that the “Dashboard” version will have all the security types as tabs you can switch between, while the “Open Positions” page will show each type separately. All prices on the Open Positions page are delayed by 15 minutes (but trade at real-time … Continue reading Open Positions »

Spots

Definition Spot and Futures contracts are a standardized, transferable legal agreement to make or take delivery of a specified amount of a certain commodity, currency, or an asset at the current date. The price is determined when the agreement is made. The only difference between spots and futures is the delivery date. The current date is used for spots and a later date is used … Continue reading Spots »

Futures

Business chart with glowing arrows and world map

Definition Futures Contracts are a standardized, transferable legal agreement to make or take delivery of a specified amount of a certain commodity, currency, or an asset at the end of specified time frame. The price is determined when the agreement is made. Here are some useful terms for futures: Contract Size: This specifies the number of units of the underlying future to be delivered. It … Continue reading Futures »

Options

What are options? An option gives the owner the right, but not the obligation, to buy or sell the underlying instrument(we assume stocks here) at a specified price(strike price) on or before a specified date(exercise date) in the future. (this is different for European options as they can only be exercised at the end date). Exercising the option is using that right to to buy … Continue reading Options »

Exercising Options

Business chart with glowing arrows and world map

Definition: Option holders have the right, but not the obligation, to buy or sell the underlying instrument at a specified price(strike price) on or before a specified date(exercise date) in the future. (this is different for European options as they can only be exercised at the end date). Exercising the option is using that right to to buy or sell the underlying instrument. Example Let’s … Continue reading Exercising Options »

Reading Stock Quotes

Definition A stock quote gives essential information about a particular stock at a point in time. The quote normally includes information such as the name of the company, the ticker symbol, the price, the day’s high and low prices, and the trading volume. Details Usually when you get a stock quote, you see lots of other information about that company and that stock price. The … Continue reading Reading Stock Quotes »

Stocks

What is a Stock? Stock is defined as a share of ownership in a company. If you own a company’s stock, you own a percentage of the company itself. This includes partial ownership of its assets (like equipment, vehicles, and buildings) and partial ownership if its income and profits. The main reason people purchase stock is because they believe in a company and its current … Continue reading Stocks »

Mutual Funds

Mutual Funds are a way you can buy into a wide range of stocks, bonds, money markets, or other securities all at once. They are professionally managed, so you are basically buying a piece of a larger portfolio. Definition Mutual Funds come in several different “flavors”, but the core concept is always the same: the fund is a pool of money contributed from many different … Continue reading Mutual Funds »

Leveraged ETF List

Business chart with glowing arrows and world map

ETFs are collections of assets into bundles you can invest in all at once, the most popular ones follow indecies (such as SPY following the S&P 500), which is one way for an investor to build a diverse portfolio without holding dozens of individual positions. However, using financial derivatives and debt, there are also “Leveraged ETFs”, which amplify the risks, and returns, of whichever index … Continue reading Leveraged ETF List »

Order Types

Order Types offered in our Stock Market Game: Market Orders, Limit Orders, Stop Market Orders, Stop Limit Orders and Trailing Stop Orders