Online stock market game
An Online Stock Market Game is an Internet platform where participants fictitious trading with shares and other securities can operate.
Forerunners of this type of stock market games are board games and the stock market simulation game initiated by the Sparkasse in 1983 . Since 2007, the Sparkasse Stock Exchange simulation game has also been carried out purely on the Internet.
Online stock market games are based on real prices and trading environments. The market situation is usually reported with a 15-20 minute delay, but since 2004 there have also been isolated real-time stock market games.
The scientific benefit of these stock market simulations is the realistic mapping of strategies and the testing of their efficiency. For their part, stock exchange beginners have the opportunity to get to know the processes of the stock exchange and to acquire broker knowledge through risk-free "learning by doing" . Some banks let their trainees and / or trainees practice and learn on specially set up simulation systems.
features
Stock market games on the Internet are usually free, but usually have large differences in terms of the following features:
- running time
- Types and number of tradable securities
- Restrictions, such as the requirements for portfolio diversification
- Transparency of the players and their depots
- Awarded prizes / opportunities to win
criticism
Since stock market games are games , their relation to reality must be critically questioned. For example, it can be seen that volatile stocks and securities with high leverage are traded disproportionately in stock market games . This phenomenon is due to the fact that these transactions are risk-free for the participant, so he does not have to fear the potential loss of his assets . However, in order to win prizes or to be listed in the front ranks of a list of the best, speculative rather than investment forms of investment are increasingly being chosen.
The lack of feedback from the fictitious transactions is another feature of why stock market games cannot establish an absolute reference to reality. Every purchase and sale would lead to a change in the market situation and thus in prices . In particular, warrants or shares with a low free float would have different price developments if virtual trading became a reality.