Playing the markets: students learn about trading techniques in live simulation

Bayes students enhanced their market trading techniques and put their instincts to the test in a game against peers.

More than 20 Bayes Business School (formerly Cass) students participated in a live trading game, organised by the Bayes Trading Society, where they learnt about the basics of market dynamics and then played the role of traders on a fast-paced simulated market floor.

The session was hosted by Imran Lakha, Founder and CEO of Options Insight, the trading education provider.

Mr Lakha discussed the terminology and psychological techniques used on the trading floor, before students were split into teams for a game to test their skills. Each of the six teams were tasked with speculating on the size of an unknown numerical figure, bidding and offering for stock at fluctuating values as they gained further information about their competitors’ knowledge.

Prizes were awarded at the end of the game for those who managed to most correctly estimate the actual number, and the team that controlled their accounts and trading behaviour most consistently.

Mr Lakha, former Head of European Index Options Trading at Citi and Bank of America, as well as Portfolio Manager at BlueCrest Capital Manager, said he was impressed by the students’ grasp of a complex activity.

“It was great to come in and speak to the students at Bayes about market trading," Mr Lakha said.

“Live games are an excellent way to gain an understanding of trading dynamics, market psychology and game theory with no need for any prior trading knowledge.

“Students hopefully got a good insight into the available job roles within the industry and the skills they require.”

Pranav Malhotra, an MSc Investment Management student who took part in the game, said the excitement of a live game took him outside of his comfort zone and taught him valuable lessons about creation of liquidity.

“The simulation was one of the most exciting in-person events I have attended so far because it was such an interactive experience,” Pranav said.

“The opportunity to make mistakes, however stupid they may be, and learn from others' mistakes as well, helped us understand the tactics market makers use to create liquidity and execute profitable trades for their clients.

“As an aspiring buy-side fund manager, finding the right brokering and trading team is an important part of maintaining fund profitability and building client relationships.

“The valuable insights provided by Options Insight allowed us to gain a good glimpse of what goes on ‘behind the scenes’ in the world of liquidity providers.”

Find out more about the MSc Investment Management programme at Bayes Business School.

On Monday 6th September, the Business School (formerly Cass) became Bayes Business School. Read more about the reasons behind the name change and the actions being taken to improve inclusion and diversity and widen participation.