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
What are some basic Financial Vocabulary?
How to get recruited using EquitySim
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
What is a Stock?
How to Choose a Stock
Active Trading vs Portfolio Management
How to start testing multiple strategies
What is Portfolio Management Strategy?
How to Build a Basic ETF Portfolio
What is an ETF?
How to Choose ETFs
What is a Bond?
What is an Option?
What are Trading Strategies?
What is short selling?
Understanding Metrics / Data
What is Diversification?
What is the Diversification Score?
What are asset-classes?
What is Geopolitical Exposure?
What is Industry Diversification?
What is Geographical Diversification?
What is Industry Exposure?
How do I read the Diversification Radar Chart?
How to read impact on diversification
What is a good Sharpe Ratio?
What is Sharpe Ratio?
What are average excess returns?
How to Improve Sharpe Ratio
How do I measure risk?
What is Return?
What is Volatility?
Credit-Suisse Investment Challenge
Recording your Strategies and Rationales
Showcasing your work on EquitySim
Adding structure to your interview answers
Preparing for the interview
Preparing for the Sales + Trading Interview
Credit-Suisse: 2019 Case Study
2019 Credit Suisse Investment Challenge [Fall]
2020 Credit Suisse Investment Challenge [Fall]
2020 Credit Suisse Investment Challenge [Summer]
Host your own EquitySim Challenge
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 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.