Short description
Set up an agricultural commodity futures position at an exchange and monitor your financials.
Capacity
You act in the role of a market participant in de market for agricultural products.
You act in the capacity of aggressor.
Task
Your task is to follow the money, when transacting.
You are allocated budget; your initial working capital is 800.00.
Look at the allocation of capital (initial and variation margin), once you open a position.
Analyse the development of your overall transaction fees.
Track your realised and unrealised profit or loss (P/L).
Objective
The aim of this simulation is learn about exchange-trading of futures contracts on agricultural commodities. It also allows you to master cash flow management, including the charging of transaction fees (exchange fee and clearing fee), the temporarily allocation of cash collateral (initial margin and variation margin) and the financial performance (realised and unrealised profit or loss).
Conclusions
At the end of the simulation, analyse your performance. See what you have done and when you have done this and whether it could have been optimised. This way, you learn and optimise your competences.
Check what differences can be detected when you compare the situation of having left no position and having left a position.