Dr. Melania Nica (Senior Lecturer) and Jack Thompson (2024 graduate), School of Mathematical Sciences, Queen Mary University of London, share their experience with using IBKR Simulated Trading Platform for education.
When did you start using IBKR Simulated Trading Platform?
MN: In 2019, while working at University of Kent. I used it first in a student trading club which I set up for undergraduate maths students to practise investment. I started this club as an experiment at first, but it has proved truly fun and rewarding, not just for the students but for me personally. For one thing, it’s helped me think about how important it is to think creatively about incorporating experience in all my teaching.
When I moved to Queen Mary, I decided to incorporate the IBKR trading platform in my teaching when I was asked to teach the course Mathematical Tools for Asset Pricing. I always try to make the academic content more approachable and to connect it to how trading is done in practice. However, I find that no matter how clear the description, student learning can be enhanced by making them experience the process themselves.
JT: In the Spring term 2024, when I took Mathematical Tools for Asset Pricing and worked with it in the lectures.
How has using the IBKR platform helped you in your teaching/learning?
MN: As a lecturer teaching finance subjects to mathematics and actuarial science students, I have always believed in placing my teaching firmly in the context of the world students see, or expect to work in. This is easier in some subjects than others – my finance assignments and exam questions always incorporate at least one issue that’s in the news, making it easy for students to research it (and hopefully motivating them to continue to follow issues). However, for some concepts that appear straightforward in theory (e.g. short-selling), I found it particularly puzzling that even advanced students struggled to transfer what they learnt from one context to another.
Also, some of the students would often talk to me about their interest in investment yet find it challenging to translate the concepts I taught such as portfolio theory or financial derivatives to the real world – as if the two were disconnected. I did not realize until using the simulated trading platform how critical the step of the ‘how to’ was, in helping students make their learning functional. This is a really helpful tool for me also because I can easily refer to the students’ experience when trying to answer a question or clarify a concept.
JT: As a student, the paper trading account offered by IBKR has been instrumental in honing my trading strategies without the risk of financial loss. I’ve been able to apply and test the theoretical knowledge that I’ve gained in the classroom to real-world scenarios.
One feature that stands out to me is the Mosaic Market Scanner, which has provided me with a comprehensive toolset to analyse various aspects of the market. I particularly appreciate the ability to customise multiple filters for different sectors and industries, personally tailoring my scanners to include specific indicators of interest to me.
For instance, I’ve found tracking social sentiment to be incredibly insightful, as it offers a unique perspective on stock movements. By monitoring both the volume of discussions surrounding a stock and the sentiment scores associated with it, I’ve been able to gauge market sentiment more accurately. This insight has been invaluable in distinguishing between random noise and meaningful market movements. Understanding the underlying reasons behind price changes allows me to make more accurate predictions about the magnitude of these changes. Consequently, I can make more informed trading decisions, enhancing both my learning experience and my ability to navigate financial markets effectively.
Any final thoughts…
MN: We really should be showing our students ‘how to’ more often. Whether it is to short a stock or write an option – the connection between theory and practice is often not automatically formed! I am really appreciative of the IBKR Education offering because it allows academics such as myself to offer the experiential learning opportunity to students without consideration for costs or heavy investment in resources. In particular, the support I received from IBKR has been excellent.
JT: The opportunity to test my ideas and understanding on the paper trading platform has given me more confidence in my ability to navigate financial markets.
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