A Futures Trading Experiment: An Active Classroom Approach to Learning
Journal of Economics and Finance Education, Vol. 10, No. 1, Summer 2011
9 Pages Posted: 15 Oct 2011 Last revised: 7 Apr 2014
Date Written: July 14, 2011
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.
Keywords: futures markets, closing, spot markets, classroom experiment
JEL Classification: A22, G13
Suggested Citation: Suggested Citation