A Futures Trading Experiment: An Active Classroom Approach to Learning

Mitchell, David T.; Hunsader, Kenneth; Parker, Scott

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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

See all articles by David T. Mitchell

Scott Parker

University of South Alabama

Date Written: July 14, 2011

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.

Keywords: futures markets, closing, spot markets, classroom experiment

JEL Classification: A22, G13

Suggested Citation: Suggested Citation

Mitchell, David T. and Hunsader, Kenneth and Parker, Scott, A Futures Trading Experiment: An Active Classroom Approach to Learning (July 14, 2011). Journal of Economics and Finance Education, Vol. 10, No. 1, Summer 2011, Available at SSRN: https://ssrn.com/abstract=1944389