1. The Enterprise Trading Game is a straightforward work-related game which enables students to put enterprise, maths and business skills into action through a simulation of real-life trading. This approach encourages active learning, problem-solving, thinking skills and teamwork.
The trading game was originally developed by BP as a graduate recruitment exercise.

2. Playing the game enables the students to:
develop an understanding of the types of enterprising qualities that can help them in their working lives
apply functional maths skills in a real-life context
gain an insight into how companies make business decisions and how the wider business environment affects success or failure
make informed decisions based on careful analysis of information
understand how a commodity such as crude oil is traded and what factors affect market price
develop problem-solving, decision-making and teamwork skills.
recognise the importance of timing and appropriate risk taking
develop evaluative skills, by reflecting on their own performance and the performance of others.

3. BP has teamed up with the London 2012 Organising Committee to create this exciting new resource that gives students a taste of the competitive world of business, whilst also allowing them to explore some of the Olympic and Paralympic Values.
An important aspect of the game is the application of three of the seven Olympic and Paralympic Values, in particular determination, respect and excellence. To explore the Olympic and Paralympic Values further, visit the official London 2012 education website ‘Get Set’ at:

4. The game provides an opportunity to develop and apply enterprise capabilities and attitudes. These include demonstrating a ‘can do’ attitude, a willingness to take initiative, and the ability to:
handle uncertainty
make reasonable risk and reward assessments
communicate well with others.
Work in trading demands innovative thinking, an entrepreneurial spirit and a capacity to relate well with colleagues.

5. What is crude oil?
Crude oil is a fossil fuel formed over millions of years naturally from the remains of tiny marine creatures.
Most places you can find crude oil were once sea beds.
High pressure and temperatures transform sediments and organic matter into crude oil which squeezes into pores in rocks.
Huge reservoirs of it are trapped below ground under solid rock. The crude oil is then extracted from deep beneath the earth.
In its raw form, crude oil is practically useless. Before it has any real value it must be refined. It can then be processed into products like gasoline, motor oils, bitumen and the chemicals that make adhesives, cosmetics and other useful products.
Why is crude oil important?
When we think about oil we generally make the connection with fuels like petrol, but that’s only part of the story.
Without oil, our lives would be completely different. Oil is used in the production of energy, plastics and even clothing.
Can you think of some of the products composed of crude oil that you encounter or rely on in your everyday life?
For further information about how crude oil is used, see the ‘Science at Work: fuels from crude oil’ case study on the BP Education Service website:

6. Supply can be affected by factors such as geopolitics or weather events. In active hurricane seasons, for example, Gulf of Mexico oil production might be interrupted for long periods, reducing the flow of oil from those sources.
Demand can be affected by something as simple and predictable as a change of season (which is why gasoline tends to cost more in the summer, when more people drive long distances) or as complicated as people’s reactions to environmental challenges.

7. Entry-level game > Standard game >
The Enterprise Trading Game resource is comprised of two different game versions:
Entry-level game: A useful starting point for introducing students to general trading concepts.
Standard game: This version takes students a step further into the real world of trading by enabling them to trade in ‘futures’. Additional materials for the Standard game have been included within this resource.
Both versions follow the same game process and principles. We recommend playing the Entry-level game with your students first before progressing on to play the Standard game. Further information about each version can be found in the relevant Teachers’ notes and the How to play film.
Entry-level game >
Standard game >

9. Each company can be made up of four to six team members (four being the ideal size).
There should be only one company Chair. The Trader and Market Analyst roles can be played by more than one student.
Stop the presentation and ask teams to read the notes about company roles in their Entry-level game: Traders’ pack.
They will also need to think of a company name that embodies the company ethos of determination, respect and excellence.
Ask teams to predict the types of skills and qualities they think will be needed to help them work together effectively to reach decisions.
Responsibilities for each of the company roles are outlined in the Traders’ pack. However, all members need to work together to help each other and to reach a team decision.

10. Practice and trading rounds:
Each round lasts for four minutes. Give teams a 30 second signal before the end of each round.
Each team must hand their Trading request form to the Assistant Controller before the end of each round.
Remind students that the game hasn’t finished until the Controller finally signals the end of trading for the last round.
See the Entry-level game: Teachers’ notes for information about the Controller and Assistant Controller roles.

11. Each trading round will begin with a news bulletin
Each trading round will begin with a news bulletin. Each news bulletin will include a news flash and an oil price update.
The price shown is the one that teams will be buying or selling oil at during that round.
Teams will need to consider the impact the news flash might have on the supply or demand of oil, and how this might affect the price in the next round.
Do you think the price will go up, down or stay neutral?
Does your company feel confident enough about the market to take a large risk, small risk or no risk at all?
‘Feeling bullish’ is an expression used when traders expect the price of oil to rise.
‘Feeling bearish’ is an expression used when traders expect the price of oil to fall.

12. Ask teams to refer to the Sample Trading request form in their Traders’ pack.
During each round, teams must record their decision to buy/sell or not trade on a Trading request form. The Trader within each team must hand this to the Assistant Controller before the end of the round.
The Assistant Controller will then enter this trading data into the Master results spreadsheet, which will calculate each team’s profit/loss throughout the game.
Remind teams that $1 commission is paid for every barrel sold (sales only). These payments are a cost and will reduce the amount of profit they make.
Teams can trade up to a maximum of 4,000 barrels at a time.
Teams cannot exceed trading limits otherwise they will be fined*. This means they can only:
buy oil if they have enough funds to pay for it at the time of purchase
sell oil if they have enough in stock at the time of sale.
*For every round that a team goes over their trading limits, a 10% fine will be deducted from their final profit.

13. Ask teams to refer to the Sample Financial report in their Traders’ pack.
The table of accounts on the Financial report will help teams to keep track of how much money and stock they have throughout the game. This will help them to decide whether they can afford to buy or sell certain quantities of oil during each round. (They do not need to hand this in during the game).
Accuracy is vital.
A calculator is advisable.
At the end of the game, each company must complete the table at the bottom of the report and hand this in.

14. The oil market has been extremely volatile in recent times.
Commission of $1 must be paid on every barrel sold.
Teams will be fined if they trade outside of their limits.
If a team has stock left after the final round, it will automatically be sold at the final market price – revealed after the final round. However, they must ensure they don’t have over 4,000 barrels left as they will be fined $5 per barrel over this limit.

15. You are now ready to start the three practice rounds
You are now ready to start the three practice rounds. Switch to the News bulletin presentation you have chosen to use.
Game overview:
1. Practice rounds (3): Teams start with $5,000 and 100 barrels of oil.
Display the first news bulletin and give teams four minutes to complete their Trading request form. Repeat this for the remaining two rounds. After the final round, reveal the final market price slide. Any remaining stock will be valued at this final market price (minus commission). Ask teams to complete their Financial report for the practice rounds.
2. First company meeting: A company meeting will be called after the practice rounds to reflect on how teams have found the game so far, whether they’re unsure of anything, how have they found their roles and whether any changes are necessary. Teams will need to refer to the First company meeting brief in their Traders’ pack.
3. Announce the results! The final profit that each team has made can be found on the ‘Summary’ tab of the Master results spreadsheet. Before progressing to the ‘real’ trading rounds, clarify any areas of the game that students may be unsure of.
4. Trading rounds (6): Teams now start the ‘real’ trading game. They begin with a new fund of $50,000 and 1,000 barrels of oil.
Follow the same steps as the practice rounds. However, this time there will be six trading rounds instead of three. After the final round, ask the teams to complete their Financial report.
5. Final company meeting: Call the Final company meeting. Teams will need to refer to the Final company meeting brief in their Traders’ pack.
6. Announce the results! The final profit that each team has made can be found on the ‘Summary’ tab of the Master results spreadsheet.

16. This extended version of the Enterprise Trading Game creates scope to further differentiate students’ learning and trading experience through ‘futures trading’.

17. Each team can be made up of four to six team members (four being the ideal size).
There should be only one Chair. The Trader and Market Analyst roles can be played by more than one student.
Stop the presentation and ask teams to read the notes about team roles in their Standard game: Traders’ pack.
They will also need to think of a team name.
Ask teams to predict the types of skills and qualities they think will be needed to help them work together effectively to reach decisions.
Responsibilities for each of the team roles are outlined in the Traders’ pack. However, all members need to work together to help each other and to reach a team decision.

18. Team brief: “Your mission is to work as an expert group of traders within BP to help supply the London 2012 Olympic and Paralympic Games with crude oil that could be converted into fuel for the Games vehicles. Your team:
will be buying and selling oil futures contracts to make a profit
will start with no trading position (no stock or funds)
will not need access to any oil or money until the date of your futures contract, which will be in six months time (after round six*).”
*Or in three months time (after round three), if you are playing the practice rounds.
Team objective: “To make more profit than your rival teams, whilst demonstrating the skills and values that can contribute towards success in business. This objective will be met by interpreting market news and accurately predicting the impact it will have on the price of oil.”
The challenge is interpret the news items to decide which way the market is going to move, and then buy and sell futures contracts as profitably as possible

19. Market view:
‘Feeling bullish’ is an expression used when prices are expected to go up.
‘Feeling bearish’ is an expression used when prices are expected to go down.
Market position:
Long: You have bought more than you have sold. You take this position if you think that prices will rise.
Short: You have sold more than you have bought. You take this position if you think that prices will fall.
Flat: Neutral. Your sales are balanced with your purchases.
Risk:
This is largest when your position is close to either end of the spectrum.
This is lower when your position is close the middle of the spectrum.

20. Lots: Crude oil is transported in very large ships which can carry between one and two million barrels of oil at a time. Because of these large amounts, oil is traded in units called ‘lots’ which are 1,000 barrels each.
So as trading teams in this game, you will also be trading in lots.
Trading limits: Teams must ensure their market position is between -100 and +100 lots during the game. If they do go outside these limits, their trade may be cancelled, or they may be asked by the Assistant Controller to re-submit their trade.
End of trading:
Position must be flat at the end of the game.
If ‘short’ at end of last trading round: Teams need to ensure they have bought enough oil by the end of the last trading round to meet their sales contracts, otherwise they will be penalised* for being short. A final trade will automatically be made at the final market price to balance their position.
If ‘long’ at the end of the last trading round: If their position is long, they will need to choose whether to sell their remaining stock in the last trading round, or wait until the final market price (if they think the price is going to rise) to balance their position.
*Penalties will be charged at $5 per barrel that has been bought to balance their position after the last trading round.

21. News bulletins: Teams will need to consider the impact that the news flash might have on the supply or demand of the commodity, and how this might affect the price in the next round.
Practice and trading rounds:
Each round lasts for four minutes. Give teams a 30 second signal before the end of each round.
Each team must hand their Trading request form to the Assistant Controller before the end of each round.
Remind students that the game hasn’t finished until the Controller finally signals the end of trading for the last round.

23. Ask teams to refer to the completed example of a Trading request form in their Standard game: Traders’ pack.
Record keeping is essential in trading.
The Trader within each team must complete a Trading request form for each trading round. This is used to state the number of barrels their team wants to buy or sell. They must hand this to the Assistant Controller before the end of the round.
Each team’s trading record will be entered electronically into the Market results spreadsheet by the Assistant Controller.

24. Ask teams to refer to the completed example of a Financial report in their Traders’ pack.
The Financial report form, will help teams keep track of their position throughout the game, so they don’t trade outside of limits (they do not need to hand this in during the game).
Accuracy is vital.
Calculators are advisable.
At the end of the game, each team must complete the table at the bottom of the report and hand this in.

25. You are now ready to start the three practice rounds
You are now ready to start the three practice rounds. Switch to the News bulletin presentation you have chosen to use.
Game overview:
1. Practice rounds (3):
Display the first news bulletin and give teams four minutes to complete their Trading request form. Repeat this for the remaining two rounds. After the final round, reveal the final market price slide. Ask teams to complete their Financial report for the practice rounds.
2. First team meeting: A team meeting will be called after the practice rounds to reflect on how teams have found the game so far, whether they’re unsure of anything, how have they found their roles and whether any changes are necessary. Teams will need to refer to the First team meeting brief in their Traders’ pack.
3. Announce the results! The final profit that each team has made can be found on the ‘Summary’ tab of the Master results spreadsheet. Before progressing to the ‘real’ trading rounds, clarify any areas of the game that students may be unsure of.
4. Trading rounds (6): Teams now start the ‘real’ trading game. Follow the same steps as the practice rounds. However, this time there will be six trading rounds instead of three.
After the final round, ask the teams to complete their Financial report.
5. Final team meeting: Call the Final team meeting. Teams will need to refer to the Final team meeting brief in their Traders’ pack.
6. Announce the results! The final profit that each team has made can be found on the ‘Summary’ tab of the Master results spreadsheet.