By the end of the course, the students should have an understanding of the current financial market landscape, of how prices are determined, and of the role of, and opportunities and dangers facing, traders in this setting.
Description / Program
The course discusses the functioning of financial markets and trading and price determination in these markets. Topics covered include order submission and trading strategies, market structure and quality, settlement, transaction costs and liquidity, bubbles and crashes, price formation and technical analysis. The lectures will draw on academic and practitioner research as well as information from markets. The course is technical at some points but I will emphasize intuition and practical applications.
TOPIC 1. ORDERS
TOPIC 2. MARKETS
TOPIC 3. TRANSACTION COSTS
TOPIC 4. LIQUIDITY
TOPIC 5. NON-EQUITY MARKETS
TOPIC 6. INSTITUTIONAL TRADES
TOPIC 7. MARKET QUALITY AND PRICE FORMATION
TOPIC 8. BEHAVIORAL ASPECTS OF TRADING
TOPIC 9. CRASHES, BUBBLES AND SPECULATION
TOPIC 10. TECHNICAL ANALYSIS AND PREDICTION
Learning Method / Style of Lessons
The lectures are discussion-style and highly interactive. In covering a topic, concepts are explained first, and this is followed by a question- and event- oriented discussion of their practical applications. Learning is facilitated though a focus on these applications and student participation. A set of power point slides to be handed out in advance forms the basis for the lectures.
Grades will be based on an exam, to be held during the normal exam period.
There is no textbook for the course. Students are expected to review and understand the material covered in the power point handouts. An optional reading list will also be provided.