Your use of Virtual Stock Exchange is governed by game rules. But it's also helpful to be familiar with SEC trading rules. Please browse both pages in this help section to ensure you fully understand the online trading process and how VSE's games are set up.
Trading Hours
9:30 a.m. EST - 4:00 p.m. EST; no after-hours trading is permitted.
Security Types
Trade any stock or mutual fund (only funds with five letters and ending with an X) on the NYSE, AMEX, or Nasdaq. Corporate bonds or government backed securities are not available.
Game Length
The game creator establishes the duration of the game. During setup, the creator establishes a start and end date for the game. The game creator can make changes to the start date before the game has started and to the end date at any time during the game.
Starting Balance
Starting balance is determined by the game creator. The default setting is $100,000 in cash.
Commission
You will be charged a commission fee per stock transaction of any value and size. This flat rate is determined by the game creator. The default commission is $29.95 per trade.
Interest on Uninvested Cash and Margin
Your uninvested cash will earn a money market fund interest, which will vary depending on prevailing market conditions. This money market rate is usually around 4-6% and is set by the game creator. Margins will be charged with interest as well, set by the game creator.
Rank
Your portfolios will be ranked against others in your games. To view real-time rankings, click Players & Rank in the My Games area on the left-hand side of any VSE page.
Market Orders Placed During Market Hours
If you make a trade during market hours, your order will generally be confirmed 20 minutes after your order has been placed.
Market Open Orders Placed During Market Hours and During Off Hours
If you place a market open order, the order will be not be executed until the market opens on the next trading day. Only orders placed before the opening bell (9:30 a.m. EST) will be executed that day. All orders placed after (9:30 a.m. EST) will be executed the next day.
Limit Orders Placed During Market Hours and During Off Hours
If you place a limit order (whether during market hours or during off hours) the order is submitted to the appropriate limit order book, where it will wait for the market price to move up to your order price (if it is a sell order) or down (if it is a buy order). Note, in extraordinary situations where the market price overshoots your limit order, your order will be executed to your advantage. Example: If you submitted a limit buy for shares of Company X at 120 and the market ask is only 119, you will purchase your shares at 119 each. On the other hand, if you submitted a limit sell for shares of Company X at 117 while the market bid is 118, you will sell your shares at 118 each.
Two Kinds of Limit Order Terms
There are two kinds of limit orders you can specify:
- Day orders
- Good until canceled orders
Stop Loss Order
Stop loss orders ("stops") are limits set by traders at which they will automatically enter or exit trades - an order to buy or sell is placed in the market if price reaches a specified limit.
A stop loss order is set to limit a trader's potential loss. A stop is placed below the current price (to protect a long position) or above the current price (to protect a short position).
Example: If you purchase 1,000 shares of Company Y at $90 you may decide to place a stop loss order. Example: Sell 1,000 shares IF price is less than or equal to $85. If price falls to $85, your order will be activated. Your loss is limited to $5.00 per share (plus commission).
Sell Short
When you want to bet against a stock by selling it short, you are selling the stock first and then buying it back later. When short selling a stock, you will be required to post collateral in your short account. This is to protect the broker in the event the shorted stock sees extraordinary gains in value and you are unable to buy it back. When buying back a stock you've shorted, you need to specify "buy to cover."
Buy to Cover
Buying shares of a stock to offset a short position, a position for shares of a stock you sold but did not own.
Margin
In the stock market, margin is the amount of cash that must be put up in a purchase of a security. VSE's default position is to allow margin accounts. You change this by using this Advanced Settings feature when you set up your game. (See related help page, My Games → Game Setup.)
In a margin account, the asset is the market value of the stocks and the liability is the size of the loan taken out to pay for the order. The rule states the lowest equity percentage you can hit as a result of a transaction is 50%. This is called the initial margin limit. Example: You start with a $10,000 cash deposit and make a $15,000 stock purchase. You now have a $15,000 asset comprised of a $5,000 liability and $10,000 in equity. That's over the 50% initial margin; this trade will be executed. Note that interest will be paid by your account for debt margin. The default interest rate is 6% but game creators can change this using the Advanced Settings.
End of the Portfolio Value
Your final game ranking will depend on the portfolio value at the end of the investment simulation. At that point, your portfolio value is calculated from closing prices on the final day of your trading session added onto whatever uninvested cash you hold.
Performance Evaluation
While real fund managers are evaluated by the returns achieved by their portfolios adjusted for the risk profile, the VSE portfolio ranking ranks performance absolutely and does not adjust for the risk of the portfolio.