MPE 707 AS S I G N M E N T
© Deakin University
- TRIMESTER 1, 2014
1
Assignment SPECULATION IN THE FOREIGN EXCHANGE MARKET
Due date: Represents: Format: Grading: Nature: Word length: Submission:
Thursday 15 May 2014. 40% of assessment. (A) Internet trading game and (B) report (with a 1-page executive summary) Numerical grade out of 40, divided up as 15 for the internet trading game and 25 for the report. Individual assignment. For the report: not more than 2500 words (electronic count) excluding executive summary, footnotes and appendices to the report. This assignment must be submitted electronically on CloudDeakin by on-campus and off-campus students by 11:59pm on the due date (please refer to the Unit Guide for further details).
In this assignment, students are required to: (A) Speculate with virtual money on a real internet trading website. (B) Write a report (maximum of 2500 words) on their trading experience.
© Deakin University
MPE 707 AS S I G N M E N T
- TRIMESTER 1, 2014
2
Disclaimer: Deakin University is not responsible for the content that appears on Easy Forex . The use of Easy Forex in this unit is for educational purposes only. Easy Forex is one of many firms providing services for transacting in the foreign exchange market, and students who wish to invest in the foreign exchange market are advised to research the market thoroughly to find a suitable firm for their purpose. Successful speculation in this assignment does not guarantee success in actual speculative trading. Please note: The demo accounts function in exactly the same way as a normal account, so if your funds run low you may receive a default email from Easy Forex reminding you that your account needs to be replenished using funds on a credit card. This may be a default setting on normal Easy Forex accounts, but as demo account holders you do not have to, and should not, provide any information of a personal nature to Easy Forex . So if you do receive any such email, please ignore it. Before completing your assignment and turning it in, please ensure that all open positions are closed.
Assessment: The speculative component of this assignment is marked out of 15. Grades are based on performance in trading, that is, the amount of money (denominated in AUD) in the account when the assignment is submitted. There is a hurdle requirement to pass this component of the assignment: you must undertake at least 15 transactions (or deals) by the due date of the assignment (i.e. 15 May 2014) using the demo account provided. For the purpose of this assignment, a transaction is defined as entering into an open position and eventually closing it before submitting the assignment. So, for example, if you buy USD 100,000 on 15 April 2014 and close this position on 18 April 2014, you would have completed 1 transaction. Any student who undertakes between 1 and 14 transactions during the trimester will
© Deakin University
MPE 707 AS S I G N M E N T
- TRIMESTER 1, 2014
3
You will realize as you commence trading that the foreign exchange market is extremely volatile. Trading in this market is, therefore, a very risky proposition. The purpose of this trading game is not to make you a forex trader (though some of you may find that you have a talent for it). Rather, it is meant to provide you with insights into the functioning of the foreign exchange market, which is best achieved by participating in it. (B) Report (25 points)
The report must start with a cover sheet (using the template posted on CloudDeakin). On the cover sheet of your report, please provide the information as requested (your last name, first name, and student ID; username and password for your trading account; the account balance and the number of transactions undertaken; and the word count). Your assignment will only be graded when all information required in the assignment cover sheet are provided. The 1-page executive summary of the report should provide a brief account of your overall strategy, the financial instruments you used, and justify the number of transactions and the total balance (denominated in AUD) in your account. In an Appendix to the report, please include the information below. First, click on the ‘My Account’ tab located on the top right of the trading platform when you log-in, and then: (1) Click on ‘My Summary’ and print the screen. (2) Click on ‘My Closed Positions’, set the date from when you commenced trading to when you stopped, and print the position data (you can use the print icon on the webpage). Please note that there are different tabs for Day Trading, Limit Orders, and Forwards. (3) Click on ‘My Statement’, set the date from when you commenced trading to when you stopped, and print your statement (you can use the print icon on the webpage).
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