FX Trading Game Using Oanda.com (Report is due by end of day 05 April 2020).
This simple project will give you some hands-on experience trading currency. This project is worth 20 points. Youâ€™re welcome to collaborate with classmates and learn the platform together but each person has to submit his/her own, unique and individual report.
Note: making a profit isnâ€™t the objective of this game so donâ€™t stress if you donâ€™t make a profit. Iâ€™m interested in your thought process, your analysis and report. Have fun pretending to be a currency trader/speculator.
Steps to accomplish:
1.Create a demo account (practice account) at www.oanda.com
2.Develop an understanding on how the platform works, look at training videos, use google.com; here are a couple YT videos to get your started:
3.Youâ€™re required to make one currency trade and hold your position until 3/31, either sell or buy X currency (your choice of pounds, euros, yen, etc.). Make your trade by 3/15/2020.
4.Hold your position for 2 weeks; close your position by 3/31/2020.
5.Write a short report that includes the following (1-2 pages, prefer APA style but not required):
a.Name, date, class section (i.e. Finance 329 â€“ Section XX)
b.Which currency you traded and why? â€“ Here Iâ€™m looking at what was your thinking and expectations by taking a currency position (for speculation purposes).
c.Compute the profit or loss you incurred.
d.Include a graph to show your beginning position and your close (last) position.
e.Explain at least one event that occurred during your holding time that affected the value of your position (i.e. central bank changed rates, good/bad economic news, etc.)
6.Submit your report via BB