International Banking and Finance

In this assignment, students are required to:

(A) Speculate with virtual money on a real internet trading website.

(B) Write a report (maximum of 2,000 words) on their trading experience.

(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 final account balance and the

number of transactions undertaken for each instrument; the currencies traded; and the word

count). Your assignment will only be graded when all information required in the cover sheet are

provided.

Immediately after the cover sheet, please provide a 1-page executive summary. The executive

summary should show a brief account of your overall strategy, the financial instruments you have

used, the number of transactions and currencies you have traded, and justify the total

losses/profits on your account and whether or not you have undertaken any risk management

activities.

In the body of the report, please provide a detailed description of the trading strategy you have

employed. You do not need to explain every transaction; this would be virtually impossible given

the word limit. Rather, your report should attempt to show the sophistication and management of

the trading strategies, highlight how you have used the theoretical tools developed in this unit, any

research you have conducted on the foreign exchange market, and the manner in which you have

approached your trading activity, using specific transactions as examples. You should also discuss

the use of risk management tools available on the easyMarkets platform during the trading period.

Please note that any news item or report that helped you make your decisions should be carefully

referenced and, if possible, included in the Appendix.

In an Appendix to the report, please include the information below. First, click on the ‘My

easyMarkets’ tab located on the top right of the trading platform when you log-in, and then:

(1) Click on ‘Reports’ under ‘My Account’, then choose ‘My Statement’, set the date from when

you commenced trading to when you stopped and print the screen.

(2) Click on ‘My Closed Trades’ under ‘My Trades’, set the date from when you commenced

trading to when you stopped, and print the position data. Please check to include all trades (set

rows to, say, 100 per page) under Day Trading, Forwards, Pending Orders (Limit Orders), and

Vanilla Options.

Please note that even if you lose money while speculating, it is quite possible for you to do well in

this component of the assignment if you are able to provide a clear and logical account of your

strategy, and possibly some insight into why it led to losses. Similarly, students that make money

must also substantiate their strategy in the report in order to do well in the assignment.

Assessment criteria (see the attached rubrics):

• Sophistication and management of the trading strategy. [6 points]

(GLO6 assessed: Self-management)

• Use of the theoretical tools developed in this unit to support the trading strategy. [5 points]

(GLO1 assessed: Discipline-specific knowledge and capabilities)

• Use of research and external sources (i.e. news) to support the trading strategy. [5 points]

(GLO5 assessed: Problem solving)

• Use of trading and risk management tools available on easyMarkets. [5 points]

(GLO3 assessed: Digital literacy)

• Overall presentation, clarity of expression, communication of ideas, and referencing. [4 points]

(GLO4 assessed: Critical thinking)

Your report should follow the Harvard style of referencing.

I have done Part A. Only Part B i.e. report is required to be done.