• Australian (ASX) Stock Market Forum

ASX/TradeFloor Options Trading Game

Discussion in 'Derivatives' started by tradefloor, Jun 6, 2016.

  1. tradefloor

    tradefloor New Member

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    Hi All,

    I was wondering if there was any appetite on this forum to play the ASX/TradeFloor Options Trading Game?

    For those that are interested in learning about trading options in Australia - this might be a good opportunity to get some experience before risking real money.

    The link to the game is optionsgame.com.au

    If you have any questions/feedback/etc please feel free to let me know.

    Regards,
    Ivan
     
  2. skyQuake

    skyQuake Well-Known Member

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    Looks very slick!

    Have a question on executions - Aussie oppie markets are often very illiquid with tremendous spreads. How will your order processing engine account for this?
    Eg BHPNX8 (BHP $19.18 23rd Jun Calls) are bid/ask 66/77.5 with 73 last trade.
    If I want to buy some
    a) at 65 - will I only get hit if the ask comes down sometime during the day to that level?
    b) at 76 - In the real market i'm sure a MM will hit my bid asap but how about the game?

    Thanks
     
  3. tradefloor

    tradefloor New Member

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    Hah - very good question!

    Spreads are all vol based off theoretical, and for this rendition of the game (it's our first one) we only allow market orders that cross the spread. So from the quote in our game we are pricing it 72/79 atm. The idea is to expand on this for the next game to properly simulate a MM - but ran out of time :).
     
  4. skyQuake

    skyQuake Well-Known Member

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    Ok that sounds good, so for the more volatile stocks you'd price in a wider spread? (In addition to the higher iv)

    How about for regular stocks?
     
  5. tradefloor

    tradefloor New Member

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    Correct... we generally try and limit the spread to the max permitted to market makers based on ASX schedules, but that is rarely a problem.

    Different stocks have different spreads, but single stocks generally tend to be priced around 2% vol each way.

    Hopefully that answers your question
     
  6. Wharris

    Wharris Active Member

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    I'm currently in the asx game and just signed up for the options game for when it starts, I'll admit i have little knowledge outside of forex so I'll be doing some research ha.
     
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