best practise in using finance simulations in uk higher education by: neil marriott and siew min...
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Best Practise in Using Finance Simulations in UK Higher Education
By:
Neil Marriott and Siew Min (Amy) Tan
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Overview
• A quick tour of TraderEx
• Introduction
• Guidelines:• Simulations infrastructure
• Promoting trading simulations to students
• Using trading simulations in teaching
• Incorporating trading simulations in assessment
• Possible improvements
• Conclusion
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Introduction
• Finance, a highly theoretical subject
with complex mathematical models,
is a popular choice in UK higher
education as evidenced by the
significant increase in growth rate.
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IntroductionStudents Growth Rates since 1996/97
(Adapted from Higher Education Statistics Agency 2012)
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Introduction
• Finance related simulations
• new teaching trend in this subject area
• enhance students learning experiences
• encourage their engagement
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Case Studies
Scope of study
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Simulations Infrastructure
• Teaching facilities• Trading room
• Trading software• TraderEx Simulations
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Teaching Facilities
• Trading room
• Purpose-built
• Virtual trading floor
• “real” trading environment
• Capacity is limited by number of computer terminals
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Trading Software
• TraderEx Simulations
• Electronic trading system
• Web-based
• Highly reliant on the stability and speed of internet connection
• Annual workshop
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Promoting Trading Simulations to Students
• Advertising on programme’s page
• Open days
• Taster session
• Module outline
• Other promotional channel• Students society• Six-form visit
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Advertising on Programme’s Page
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Open Days
• Interactive session
• Engage potential students
• Engage parents
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Taster Session
• Taster session in Corporate Finance module (semester 1)
• One-off two-hour workshop
• Students found trading simulations interesting
• Looking forward to Investments and Behavioural Finance module (semester 2)
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Module Outline
• Promote the idea of the trading simulations
• Allow students to prepare for the sessions especially when the trading simulation forms part of the module assessment
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Other Promotional Channel
• Student Societies
• Cardiff Business School: Cardiff University Finance and Trading Society
• Winchester Business School: Investment and Trading Society
• 6th forms visit (Cardiff Business School)
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Using Trading Simulations in Teaching
• Modules
• Introduction to the simulations
• Simulation type: stand-alone vs. network
• Familiarising with the trading simulations
• Scheduled teaching session
• Trading guides
• Post-simulation evaluation
• Length of the simulation
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Modules
• Under- and post-graduate courses
• Finance modules related to the market structure and the trading mechanism
• Cardiff Business School: Financial Markets and Institutions module, undergraduate
• Winchester Business School: Investments and Behavioural Finance module, postgraduate
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Introduction to the Simulations
• Discuss the underlying theory before introducing the simulations
• About 10 to 20 minutes
• Explain key information contained on the opening screen and other practical facts, e.g. difference between limit and market orders, actual versus target level of positions.
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Simulation type: stand-alone vs. network
• A stand-alone simulation means that students are interacting only with the software itself.
• A network simulation allows students to interact among themselves and participate in the market influencing share price fluctuations
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Familiarising with the Trading Simulations
• It is advisable to provide students a reasonable time to familiarise themselves with the software
• 30-minute stand-alone session
• Students were encouraged to repeatedly operate the stand-alone session
• To establish students’ confidence in trading and fostered their engagement in learning
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Scheduled Teaching Session
Time allocation for a 3-hour trading simulation’s session
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Trading Guides
• Students can become overwhelmed by the information contained on the trading screen.
• Provide trading guides before the start of the simulation.
• Students were encouraged to keep record of their activities using the guides.
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Post-simulation Evaluation
• To ensure that the students learned from the trading simulation
• Display the Leader Board after each trading simulation and discuss with students
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Length of the Simulation
• Ideal length of the simulation: 2 - 3 hours
• Allows students a reasonable duration to understand the mechanism and familiarise themselves with the system before the simulation begins.
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Incorporating the Trading Simulations in Assessment
• Types of assessment
• Mock simulation
• Alternative assessment
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Types of Assessment
• Winchester Business School:
• Self-reflection report
• Do not earn marks on how well they performed in the simulation
• Simulation type: Network Quote Driven market
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Mock Simulation
• Lack of previous experience in trading simulations
• Not confident with the assessment
• Allows students to experience the “real” trading simulation without the fear of poor performance
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Alternative Assessment
• Possibilities of unforeseen technical issues
• Prevented the operation of the network simulation
• Alternative set of assessment using stand-alone trading simulation
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Other Issues
• Student engagement
• Technical support
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Student Engagement
• Cardiff Business School• Tutor 1: Lack of assessment, students did not
take them as seriously
• Tutor 2: 20% assessment to ensure students are “learning”, positive feedback from students
• Winchester Business School• Students engaged when they knew that it
formed part of the assessment activities
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Technical Support
• Technical breakdown during the simulation session could be a dysfunctional learning experience for students
• It is important to receive good and timely support from the software provider’s and university’s technical support team
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Possible Improvements
• Pre-simulation check
• Support from the software provider
• Community of practice
• Variety of trading software
• Continuing development workshop
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Pre-simulation Check
• Before operating the simulation for the purpose of assessment:• tutors are encouraged to make the
university’s technical team aware of the session
• to check the computer system and network
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Support from the Software Provider• Before the assessment:
• Contact the software provider’s technical team
• Online software: subject to the stability of the provider’s server
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Community of Practice
• Community of finance-related simulations users in UK higher education
• Information sharing
• Mutual-benefits
• Self-support group
• New technology
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Variety of Simulations Software
• Trading simulations is becoming a trend for teaching finance modules
• To encourage the practice of using simulation
• More trading simulation packages
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Continuing Development Workshop
• Trading simulation: an effective way to encourage students’ engagement
• Practical aspect: challenging, complex of software design and unpredictable technical problems
• Attending workshops: improve the learning and teaching of using the simulations
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Conclusion
• Benefits of the trading simulation:• very helpful in stimulating students’ engagement in
learning• enhancing employability of students• improving students’ satisfaction• increasing academic performance• useful tool in bridging the gap between theory and
practice
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Conclusion
• Research limitations:• Two case studies• One type of simulation software
• Recommendations:• More case studies• Other simulations• Cross-country comparison
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Questions & Feedback