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ETF Trading Challenge

Premium
hard

Identify and trade arbitrage opportunities between ETFs and their constituent stocks. Requires quick mental math!

1-20 Players
~10 min

Overview

ETF Trading Challenge is a fast-paced arbitrage game where players identify pricing inefficiencies between ETFs and their underlying stocks. Each ETF is composed of 2-4 stocks, and prices update in real-time. When the sum of stock prices diverges from the ETF price, an arbitrage opportunity exists. Quick mental math and fast reactions are key to profiting!

Game Phases

1

Setup

The host configures game settings and the game begins. The stocks and ETFs start with quotes where no arbitrage is possible yet.

2

Price Updates

During the game, stock and ETF prices update periodically. Watch for price movements - a green flash in the ticker means the price went up, red means down.

3

Arbitrage Detection

Monitor the ETF compositions and mentally calculate when arbitrage opportunities arise.

  • Buy ETF: profitable when the sum of bid prices of the stocks is higher than the ask price of the ETF.
  • Sell ETF: profitable when the sum of ask prices of the stocks is lower than the bid price of the ETF.
  • 4

    Trade Execution

    Click Buy ETF or Sell ETF to execute a trade. After a trade, stock prices reset to remove (or reduce!) the arbitrage opportunity while the ETF price continues its trend.

    5

    Final Scoring

    When time runs out, final rankings are displayed. Your P&L reflects the sum of all your trades. Successful arbitrageurs profit from correctly identifying and acting before others on price discrepancies.

    ETF Trading Challenge

    1-20 players | ~10 min

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