In response to demand, Australian fintech, TradeFloor, and the Australian Securities Exchange (ASX) have joined forces to deliver the ASX Options Trading Game for the second time this year.
More than 3,000 investors have already registered to play the game, which commences on Monday 16th October and runs for five weeks, concluding Friday 17th November.
Participants will be given $50,000 virtual cash to invest across 101 stocks, four ETFs and the S&P/ASX 200 Index, using live prices and brokerage fees to simulate real market conditions. Participants will compete against each other for a place on the leaderboard or within their own leagues with friends and family. The winner receives a $500 cash prize.
First launched in June, the ASX Options Trading Game provides a realistic trading environment that allows for hands-on learning about the intricacies of trading options – from basic concepts to advanced strategies – while empowering individuals to make informed investment decisions.
Dan Jowett, CEO of TradeFloor's parent company, Openmarkets Group (OMG), said, "As a group dedicated to providing innovative trading solutions, we are excited to partner with the ASX and showcase our market-leading risk management technology. The ASX Options Trading Game offers users an unparalleled learning experience, combining our advanced technology with ASX's deep market expertise.
"As a leading provider of options trading technology, TradeFloor is proud to deploy our unique solution to facilitate the game over the next five weeks. We believe this initiative will significantly contribute to the financial education landscape by fostering a deeper understanding of options trading and cultivating informed decision-making skills," said Mr Jowett.
ASX Head of Equity Sales & Equity Derivatives, Graham O’Brien , echoed this sentiment, stating: "With more Australians taking an active interest in investing than ever before, products such as options are growing in popularity as they can be a useful way to minimise portfolio risk. We're pleased to collaborate with TradeFloor to offer investors a way to learn about options trading in a risk-free and educational environment."
“The ASX Options Trading Game reflects the ASX’s commitment to promoting financial literacy and equipping individuals with the knowledge and skills to make informed investment decisions. By creating an immersive and realistic trading experience, we hope to empower the next generation of traders and help them navigate the dynamic world of options trading with confidence.”
Registrations for the ASX Options Trading Game are now open. Anyone can register and participate at any time over the five weeks from Monday 16th October to Friday 17th November.
The ASX Options Trading Game is accessible at optionsgame.com.au via web browsers and is compatible with desktop and mobile devices.
About the ASX Options Trading Game
The ASX Options Trading Game offers users an immersive experience that sheds light on the concepts and strategies associated with options trading. Players get $50,000 virtual cash to trade 87 stocks, four ETFs and the S&P/ASX 200 Index using live prices and brokerage fees to simulate real market conditions. By simulating real-world market conditions, participants can explore the functionalities and intricacies of options trading without the risk of actual financial loss. The platform allows users to learn about important aspects of options trading, including:
- Call and put options: Participants will understand the fundamental distinction between these two types of options. A call option grants the holder the right, but not the obligation, to buy an underlying asset at a specified price within a predetermined timeframe. Conversely, a put option gives the holder the right, but not the obligation, to sell an underlying asset at a predetermined price within a specified timeframe.
- Strike price and expiry: Users will gain familiarity with strike prices, which represent the pre-agreed price at which an option can be exercised. Additionally, participants will learn about the significance of expiry dates, as options have a limited lifespan and must be exercised or sold before the expiry to realise any potential profit.
- Option strategies: will introduce participants to various strategies used in options trading, including covered calls, protective puts, straddles, and spreads. Traders will gain insights into the risk-reward profiles and potential outcomes associated with these strategies.
- Risk management: The game will emphasise the importance of risk management in options trading. Participants will learn how to calculate and manage risk through concepts such as position sizing, stop-loss orders, and risk-reward ratios.
The Options Trading Game complements the comprehensive suite of educational tools available for investors available through ASX’s Options Knowledge Hub. In addition to the game, investors looking to enhance their understanding of options trading can access a variety of resources such as online courses, on-demand videos, webinars, calculators, and strategy guides.