How-to: Company Pages
How to: Discovery
How-to: Portfolio Holdings
How to: Activity
How to: Leaderboard
How to: Performance
How to: Challenges
How to Trade
How to: use EquitySim to improve your recruitment potential
Fixing Account Errors
My Trade is not being processed
An investment in my portfolio is showing up as $0
Stock splits, mergers + acquisitions
I can't find a specific investment
I can't sign-up
My credit card is being declined
Showcasing your work on EquitySim
Designing a stand-out resume
Preparing for the S+T interview
STAR Structure for Behavioural Interview Questions
Interview Prep: Tell me about yourself
Interview Prep: Pitch me an Investment Idea
Interview Practice - Partner Exercise
Interview Prep: What to wear
2022 Credit-Suisse Challenge
Case Study: 2019 Credit-Suisse Results
2022 Challenge Partner Program
What is a Stock?
How to Choose a Stock
Active Trading vs Portfolio Management
How to start testing multiple strategies
What is an ETF?
How to Choose ETFs
What is short selling?
What is a Bond?
What is an Option?
What is Portfolio Management Strategy?
What is Diversification?
What is the Diversification Score?
How to Build a Basic ETF Portfolio
What are asset-classes?
What is Industry Exposure?
What is Geopolitical Exposure?
How to read impact on diversification
What is Volatility?
What is Return?
What is Sharpe Ratio?
How to Improve Sharpe Ratio
How do I measure risk?
What are average excess returns?
What is a good Sharpe Ratio?
Host your own EquitySim Challenge
Asset Allocation (Assignment 1)
Activity 1: Trading Frequency and Returns
Activity 2: ETFs and Asset Allocation
Activity 3: Creating a Long Stock Pitch
Activity 4: Shorting, Correlation, and Hedging
Activity 5: Equities — Stop and Limit Orders
Can users share an account?
How do I export classroom data?
How do I delete, archive and edit my class?
Challenge Setting Types
How does EquitySim compare to other simulations?
What are Trading Strategies?
What are some basic Financial Vocabulary?
Recording your Strategies and Rationales
What is EquitySim?
Can I undo a trade?
How are prices determined in the simulation?
Why didn't my trade execute immediately?
How do I exchange currency?
Why isn't my ranking showing up?
What are Public Portfolios?
How do I switch between portfolios?
How am I Graded?
Does EquitySim have sample assignments for my curriculum?
How are Options priced in the simulation?
How do I find my daily portfolio change?
How do the Portfolio Emails Work?
Is my data confidential?
How do I delete my account?
How our simulations reflect the real-world
What can I trade on EquitySim?
What is a good rationale?
How to set-up your team
What are the different order types?
Which government bonds can I trade?
Most options are highly volatile and face liquidity issues (not enough people are trading them to create a stable price). This holds true in the real world and is further exponentiated in the simulation.
Options are a unique asset that worthwhile learning (especially through simulation, as it is very easy to make mistakes with options). However, if you are in a challenge looking to maximize your rank, options are a major wild card and are very difficult to predict (especially in our simulation).
Remember: How are trades executed in the simulation?
Tesla Option Example:
Buy / Cover-short orders are placed at the BID (In this example the BID is: $599.65)
Sell / Short orders are placed at the ASK (In this example the ASK is: $615.05)
Estimated returns (profit /losses) are calculated based on the "Last Traded Price," in the real world (in this example the "Last Traded Real-world Price": $435.05.
What this means is if you placed a market order to buy these Tesla options, you would purchase it at $615.05. However, when they show up in your portfolio they would technically be worth: $435.05, creating a fairly large loss. This is a liquidity problem, meaning that though clearly, the option is worth more than the last price, no one has purchased it recently to re-value the option.
Con: Your option value in the simulation is at the mercy of the "last traded real-world price."
Pro: Options are highly volatile, which means even if you take a disproportionate loss to purchase the option now, these tides can turn very quickly in a matter of days (sometimes even hours).
Remember these are problems one would also face in the real world, just further exponentiated by the simulation.