➤ CME Institute Trading Simulator

Trading Simulator replicates live futures markets by leveraging real market data. A constant

stream of new prices informs your strategies for CME Group's top products across all 6 asset

classes, including Bitcoin and Micro E-mini futures. The Access to the simulator is free, all

you need is a CME Group Login account. Please create an account before trading.

➤ Marking Guide

Your report must include the following sections:

1. Trading objectives: (2 marks)

Give an overview of your trading objectives.

2. Summarize your hedging strategy (6 marks)

Provide a summary on how you use Equity Index future products to hedge your stock

market price risk. The content should include but not limited to:/nHow much percentage do you hedge your portfolio? And why?

Which future product(s) you use to hedge your risk, outline their basic specs?

What strategy you employed to hedge (e.g., delivery month, contract price, contract

amount, long or short, etc)?

• What is the performance of your hedging by the end of your last trading date? And how

the spot price change for your fund holding?

3. Summarize your speculation trading (7 marks)

Provide a summary on how you use future contracts to speculate/arbitrage during your

trading period. The content should include but not limited to:

•

Do you think the 50% limits allocated on speculation is too high? And why? Do you

feel speculation is risky from your trading exercise?

•

How the speculation performed and explain your profit/loss?

• How your speculation strategy differs from last time (Trading session 1)?

• How you feel when you experience losses from the speculation?