1. Finance Club University of Illinois
MOCK TRADING SESSION
Finance Club University of Illinois

2. Personal Shopper
Go buy me a 10 second car

3. Personal Shopper = Broker
Go buy me a 10 second car
You are the Broker
This is a Market Order
You'd better buy your client a good car at a good price

4. … but don't pay more than $93,000
Personal Shopper
Go buy me a Porsche
… a blue one
… but don't pay more than $93,000
Porsche Cayenne Turbo

5. Personal Shopper = Broker
Go buy me a Porsche Cayenne Turbo
… a blue one
… but don't pay more than $93,000
You are the Broker
This is a Limit Order
You'd better buy your client a blue Porsche Cayenne Turbo and you'd better not pay more than $93,000

6. Limit Order You're my new best friend
Go buy me a Porsche Cayenne Turbo
… a blue one
… but don't pay more than $93,000
You're my new best friend
My client is now $3,000 happy
Porsche Cayenne Turbo
Fully Equipped
$90,000

7. … but don't pay more than $93,000
Limit Order
Go buy me a Porsche
… a blue one
… but don't pay more than $93,000
… AND I'M NOT PAYING!
Porsche Cayenne Turbo
Fully Equipped
$100,000
YOU'RE FIRED

8. … but don't pay more than $50
Personal Shopper
Go buy me a share of Nike
… but don't pay more than $50

9. Broker You are the broker This is a limit order
Buy Nike (NKE) Limit $50
You are the broker
This is a limit order
You better buy your client a share of Nike (NKE) and you'd better not pay more than $50/share

10. Buy me a share of stock, but don't pay more than $50
Client Order
The order comes in to broker J
BUY LIMIT 50 C F
Buy me a share of stock, but don't pay more than $50
If your order is completed, you will receive a $1 commission

11. Broker J J's Trading Symbol is at the bottom of the I>clicker
Power On
My Symbol J

12. Broker J Buy Nike Limit $50
J, as the broker, must buy his client a share of Nike ≤ $50.
Enter a bid by clicking on C
C = BID J

13. Mock Trading Session
J's Bid J

14. Broker
Increase the bid by clicking on C
C = BID J

15. Mock Trading Session
Oops. Too High
J's Bid J J J J J J J

16. Broker J Use D to lower the bid to $48
My limit is $50, but let's see if I can get someone to sell for $48
D = BID J

17. Mock Trading Session J J J
J's Bid J

18. … but don't take less than $48
Personal Shopper
Go sell my share of Nike
… but don't take less than $48

19. Broker You are the broker This is a limit order
Sell Nike (NKE) Limit $48
You are the broker
This is a limit order
You better sell your client's share of Nike (NKE) and you'd better get at least $48/share

20. Sell a share of stock for me, but don't sell for less than $48
Client Order
The order comes in to broker M
Limit Order
SELL LIMIT 48 C F
Sell a share of stock for me, but don't sell for less than $48
If your order is completed, you will receive a $1 commission

21. Broker M Sell Nike Limit $48
M, as the broker, must buy her client a share of Nike ≥ $48.
Enter an ask by clicking on B
B = ASK
Her Symbol M

22. Mock Trading Session M
M's Ask
$48-$55 J

23. Broker M M lowers her ask to $49
Her limit is $48 but let's see if we can get someone to buy it for $49
B = ASK M

24. $49 That's good enough for me
Mock Trading Session
$49 That's good enough for me
$48-$49
M's Ask M
J's Bid J

25. Broker
J uses C to raise his bid to $49
C = BID J

26. Highest Bid = Lowest Ask
Mock Trading Session
$49-$49
M's Ask
J's Bid
Highest Bid = Lowest Ask J M

27. Mock Trading Session Trade J buys from M @ $49 $49-$49 $49 Trade Data1
Trade
Data

28. Broker’s Sheets
J and M each record the transaction.

29. J uses the BUY side of his sheet
J’s Broker Sheet
J’s client is the buyer
J uses the BUY side of his sheet J
$49
$50 M
$ 1

30. Buy me a share of stock, but don't pay more than $50
Broker J
J turns the order over to indicate that this client’s order has been filled
Now he will be issued new orders from other clients
BUY LIMIT 50 C F
Buy me a share of stock, but don't pay more than $50
If your order is completed, you will receive a $1 commission

31. M uses the SELL side of her sheet
M’s Broker Sheet
M’s client is the seller
M uses the SELL side of her sheet M
$49
$50 J
$ 1

32. Sell a share of stock for me, but don't sell for less than $48
Broker M
M turns the order over to indicate that this client’s order has been filled
Now she will be issued new orders from other clients
Limit Order
SELL LIMIT 48 C F
Sell a share of stock for me, but don't sell for less than $48
If your order is completed, you will receive a $1 commission

33. Mock Trading Session (1) S, (2) M,F (3) N,D,T (5) R,G,C,W,Z (1) A,
(1) J, (1) Z,
(2) U,B
(3) E,H,P
(2) Q,V
$50-$52
$49
$53
$48
$51 24

34. J
Broker’s Sheets
$49
$48
$50
$51
$52
$47
$50
$48
$49
$51
$52
$47 M Q H G A C P R V $1 $3
At the end of the session J’s Broker Sheet looks like this
His sells are on the other side 12 $9

35. J
J is a great broker

36. Finance Club University of Illinois
MOCK TRADING SESSION
Finance Club University of Illinois

37. Technical Notes
I>clickers can accept 400 clicks from 400 clickers pretty much at the same time so congestion is not a problem
However, I>clickers were designed to answer a question and then accept confirmation that the answer was received…
You must wait for the confirmation before you click again.
If you just keep clicking it will interfere with the ability of the clicker to receive confirmation and clear for the next click.