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A Futures Trading Experiment: An Active Classroom Approach to Learning

Author

Listed:
  • Mitchell, David
  • Hunsader, Kenneth
  • Parker, Scott

Abstract

This paper presents a classroom experiment where students participate in a simulated futures market. This experiment can be run in about an hour and allows students to interact, negotiate, try different strategies, see how their accounts are closed, and observe how spot and futures markets relate. After participating in the futures experiment, students participate in a debriefing session to help them solidify their learning. This experiment can be successfully adopted in undergraduate finance education

Suggested Citation

  • Mitchell, David & Hunsader, Kenneth & Parker, Scott, 2011. "A Futures Trading Experiment: An Active Classroom Approach to Learning," MPRA Paper 56496, University Library of Munich, Germany, revised 2011.
    • Handle: RePEc:pra:mprapa:56496
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    File URL: https://mpra.ub.uni-muenchen.de/56496/1/MPRA_paper_56496.pdf
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    References listed on IDEAS

    as
    1. Michael S. Haigh & John A. List, 2005. "Do Professional Traders Exhibit Myopic Loss Aversion? An Experimental Analysis," Journal of Finance, American Finance Association, vol. 60(1), pages 523-534, February.
    2. repec:bla:jecsur:v:15:y:2001:i:2:p:221-36 is not listed on IDEAS
    3. Charles A. Holt, 1999. "Teaching Economics with Classroom Experiments: A Symposium," Southern Economic Journal, John Wiley & Sons, vol. 65(3), pages 603-610, January.
    4. Bradley T. Ewing & Jamie B. Kruse & Mark A. Thompson, 2004. "Money Demand and Risk: A Classroom Experiment," The Journal of Economic Education, Taylor & Francis Journals, vol. 35(3), pages 243-250, July.
    5. Denise Hazlett, 2003. "A Search-Theoretic Classroom Experiment with Money," International Review of Economic Education, Economics Network, University of Bristol, vol. 2(1), pages 80-90.
    6. David T. Mitchell & Robert P. Rebelein & Patricia H. Schneider & Nicole B. Simpson & Eric Fisher, 2009. "A Classroom Experiment on Exchange Rate Determination with Purchasing Power Parity," The Journal of Economic Education, Taylor & Francis Journals, vol. 40(2), pages 150-165, April.
    7. Tisha L. N. Emerson & Beck A. Taylor, 2004. "Comparing Student Achievement across Experimental and Lecture-Oriented Sections of a Principles of Microeconomics Course," Southern Economic Journal, John Wiley & Sons, vol. 70(3), pages 672-693, January.
    8. Denise Hazlett & Jeela Ganje, 1999. "An Experiment with Official and Parallel Foreign Exchange Markets in a Developing Country," The Journal of Economic Education, Taylor & Francis Journals, vol. 30(4), pages 392-401, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Hall, Joshua C. & Podemska-Mikluch, Marta, 2015. "Teaching the economic way of thinking through Op-eds," International Review of Economics Education, Elsevier, vol. 19(C), pages 13-21.

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    More about this item

    Keywords

    futures markets; closing; spot markets;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing

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