It was 12:30 PM Saturday afternoon. Some of us from new batch who joined Trade Club of IIFT were waiting anxiously for the club coordinators to come and know what exactly this club is all about?
Then Sunil and Alok (club coordinators) entered the class along with Pankaj and Srinivas. We all started listening to them as they told us that they will be starting up with a small game which will give us a glimpse of TRADE. They explained the game to us, it was virtual commodity trading game in which we had to trade virtually in some of the commodities and had to maximise the profit over a period of time.
They explained us about the rules of the game and explained how to play it. As most of us were new to this thing most of us were finding it difficult to understand.But the Club coordinators were kind enough to have a trial version before the actual game so that every one can get a feel of it.
Here began the trial, they started giving us some of the facts and news so that one can make judicious decision in investing in any commodity.We all were really enthusiastic and came to know that how to buy, sell and short sell a commodity. Trial game made all of us know that what we were supposed to do in real game.
Then came the turn of actual game where it was announced that the winning team (team comprised of three people) will get a chance to be win movie tickets, which made the people play game like a professional trader.
Every team was give 10 tokens to invest in the commodities then began the round 1 where we were presented with the prices of some of the commodities and some facts.
People started buying the commodities through Broker (Pankaj, Sunil and Sri were acting brokers). Atmosphere out there reminded me of the old days stock exchange when people used to trade in equities in Stock Market shouting and screaming. Thanks God now everything is automated and is done on a computer terminal.
Round after round every one was getting more involved in the game and the atmosphere became really eclectic.After 12 rounds which was the last round of the game every one tried to square off their holdings, some people could not do so every thing was left on the mercy of Brokers. As the game ended we all handed over our transactions summary to the brokers of course after calculating our profits as every team wanted to maximize its profit to win the movie tickets, but no one could tell which team is the winner as there was lot of confusion.
We were also asked to give the name to our team and the best team name would win a prize for itself.
For results we had to wait for 4 hours. In evening at 6:30 PM when the coordinators came back with the results every one was anxious. Then they told the profits of each team. Finally wait was over and they declared the winning team and first two teams won the movie tickets at INOX, city centre.
Now it was turn of best team name all teams really came out with the nice names like commodiators, Apna sapna money money money, Raam Bharose etc. Apna Sapna Money Money Money was awarded the best name.
Then came one more surprise, it was now the turn of some on the spot questions, two questions were asked and 2 people could win chocolates for themselves.
In fact it was a wonderful beginning to TRADE Club activities and I would like to thank Sunil, Srinivas, Pankaj and Alok for starting such a great activity which has really helped us in developing the great interest for TRADE Club.Thanks to BLASH and we all will make sure that this club goes a long way and make all of us learn a great deal.
Gaurav Agarwal
07-09 batch,IIFT-Kolkata
Tuesday, July 31, 2007
My First Stint with Commodities----------Praveen Dhawan
Equities, preference shares, debentures are fine but what is commodity trading? Well, that was answered in the first meeting of Trade Club. Seniors had arranged a mock trading session which was an experience in itself.
It all started with confusion and wierd questions from all and sundry. I am sure the coordinators had a tough time answering our queries. We got Rs. 10 per group. That added to the confusion. What can you possibly do with 10 bucks? And then, trading in crude oil and gold sounds good, but trading in chillies, pepper and sugar made us feel like kiryana store. But everybody was excited because our respected seniors had arranged for movie tickets at Inox for the winners. You game? Hell yeah!!!
And then the game started. As the first slide came, every group was involved in ‘deep analyses’ of what to buy and what to sell. With every passing slide, the anxiety increased and no one wanted to miss any hint. People were shouting at the top of their voices and we could get a feel of a real trading house, as if millions of dollars are at stake. We had to apply our basic knowledge of demand and supply to guess the change in prices. Yes it does sound like an easy job but believe me it’s easier said than done. We had to make sure not only to make profit but also ensure maximum gains. Around 12 groups were fighting for that coveted prize.
Gold and crude oil were pricey investments but returns were high. Prices of spices fluctuated a lot and were comparatively risky. The 12-round game gave enough opportunities to make right a few wrong decisions taken here and there. In the end we calculated the profits and team ‘Commodiators’ emerged as the winners.
It was truly a commendable effort put in by the Blash coordinators. The purpose of the game was to give a feel of ‘live trading’ and I would say that it achieved its purpose. It is important to keep a track of all the happenings around the world because now I know that as the winters start in USA, I need to put in more money in crude oil.
Praveen Dhawan
MBA(IB) 2007-09
It all started with confusion and wierd questions from all and sundry. I am sure the coordinators had a tough time answering our queries. We got Rs. 10 per group. That added to the confusion. What can you possibly do with 10 bucks? And then, trading in crude oil and gold sounds good, but trading in chillies, pepper and sugar made us feel like kiryana store. But everybody was excited because our respected seniors had arranged for movie tickets at Inox for the winners. You game? Hell yeah!!!
And then the game started. As the first slide came, every group was involved in ‘deep analyses’ of what to buy and what to sell. With every passing slide, the anxiety increased and no one wanted to miss any hint. People were shouting at the top of their voices and we could get a feel of a real trading house, as if millions of dollars are at stake. We had to apply our basic knowledge of demand and supply to guess the change in prices. Yes it does sound like an easy job but believe me it’s easier said than done. We had to make sure not only to make profit but also ensure maximum gains. Around 12 groups were fighting for that coveted prize.
Gold and crude oil were pricey investments but returns were high. Prices of spices fluctuated a lot and were comparatively risky. The 12-round game gave enough opportunities to make right a few wrong decisions taken here and there. In the end we calculated the profits and team ‘Commodiators’ emerged as the winners.
It was truly a commendable effort put in by the Blash coordinators. The purpose of the game was to give a feel of ‘live trading’ and I would say that it achieved its purpose. It is important to keep a track of all the happenings around the world because now I know that as the winters start in USA, I need to put in more money in crude oil.
Praveen Dhawan
MBA(IB) 2007-09
Our experiences on the first trade club meet…
The experience of our first trade club meet was really amazing. When novice players set out to unfold the treasure in INOX with meagre ten one rupee coins, one can easily visualise what the scene can be! In other words it was a first hand experience in commodity trading in a simulated market. To start with we had ten one rupee coins as token money and we were suppose to maximise our profit by buying or selling different commodities. The first round was a demo one and the chaos and confusion of the players went far beyond the real life situation. Anyway it was soon brought under control by diligent effort of the moderators. The demo version gave a good feel of the game and the real game started soon after the demo one.
At the outset a certain set of market conditions were announced beforehand which remained as the guiding principles throughout the whole game. Every team was given two minutes time to think, decide and get the transaction signed by the moderators. The prices of the commodities were displayed along with possible factors which could influence the prices later on in the subsequent months. The trading started on April and went on till March next year. Each and every team applied best of their strategies to maximise their profit within this period.
Forecasting the subsequent prices of the commodities with rapidly changing market scenario was the real fun of the game. One had the option to buy, sell or short sell any commodities looking at the possible future market price and inflation as well. In the final round every team tried to square off their commodities into cash so as to maximise their net profit.
To add more fun into the game, teams were asked to choose a name for their group and separate prize was reserved for the best named group.
The whole game, right from the beginning, was really a nice learning experience for all of us. It was designed in such a way that everybody, regardless of his/her prior and knowledge in trading, can participate easily. It developed an insight to understand things that go around in a commodity market. I hope BLASH will come up with more and more such efforts to enliven our experiences during the stint at IIFT.
Group members
Pallav Goswami
Neha Gupta
Prabhnoor Singh Grewal
Santosh B.
At the outset a certain set of market conditions were announced beforehand which remained as the guiding principles throughout the whole game. Every team was given two minutes time to think, decide and get the transaction signed by the moderators. The prices of the commodities were displayed along with possible factors which could influence the prices later on in the subsequent months. The trading started on April and went on till March next year. Each and every team applied best of their strategies to maximise their profit within this period.
Forecasting the subsequent prices of the commodities with rapidly changing market scenario was the real fun of the game. One had the option to buy, sell or short sell any commodities looking at the possible future market price and inflation as well. In the final round every team tried to square off their commodities into cash so as to maximise their net profit.
To add more fun into the game, teams were asked to choose a name for their group and separate prize was reserved for the best named group.
The whole game, right from the beginning, was really a nice learning experience for all of us. It was designed in such a way that everybody, regardless of his/her prior and knowledge in trading, can participate easily. It developed an insight to understand things that go around in a commodity market. I hope BLASH will come up with more and more such efforts to enliven our experiences during the stint at IIFT.
Group members
Pallav Goswami
Neha Gupta
Prabhnoor Singh Grewal
Santosh B.
Welcome to BLASH Online BLOG........
Dear friends...............
Welcome to the blash club(The trading club @ IIFT -Kolkata).From now on ,this blog can be used to pour in your views on latest happenings in WTO or in the commodities market or the club activites.Improvements,suggestions and of course "Gaaliyaan" are also welcome ...
Anyone who intends to post articles/happenings are required to mail ur article to blashclub@iift.ac.in and you are free to post your comments on the blog.......
So happy blogging and lets keep this blog alive and rocking!!!!!!!!!!!
Team BLASH
SUnil Kumar Kollu
Alok ray
Welcome to the blash club(The trading club @ IIFT -Kolkata).From now on ,this blog can be used to pour in your views on latest happenings in WTO or in the commodities market or the club activites.Improvements,suggestions and of course "Gaaliyaan" are also welcome ...
Anyone who intends to post articles/happenings are required to mail ur article to blashclub@iift.ac.in and you are free to post your comments on the blog.......
So happy blogging and lets keep this blog alive and rocking!!!!!!!!!!!
Team BLASH
SUnil Kumar Kollu
Alok ray
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