Trading Bubbles is a simple game that helps you understand basic notions of trading. Do you have an eye for inefficiencies? Can you hedge your portfolio? Bet on whether randomly moving particles hit bubbles. Click at a bubble once to Buy, twice to Short Sell, and a third time to reset.
For each bubble, the market price is the % value indicated within it. You profit if the realization is aligned with your bet. Do you think its more likely the bubble will get hit than the market price indicates? Then buy. Too expensive? Short sell. Read more here.
Click circles to Buy (Green) / Sell (Red) / Do Nothing (Grey). Then Start Round.
Detailed Instructions
Controls:
- Click once on a bubble to Buy (go long).
- Click twice to Sell (go short).
- Click a third time to reset your bet.
Bubble Types:
- Barrier: These bubbles pop when a particle hits them, stopping the particle in its tracks.
- Digital: These bubbles pay out if a particle is inside them at the end of the round.
- Knock-In: These bubbles are activated when a particle passes through them.
How is that related to Trading?
Before you read this section, I encourage you to first try to come up with your own strategies.
Relative Valuation. Assets “close” to each other are more likely to have a similar valuation. Closeness can be proximity, or characteristics of the assets.
Correlatedness. Assets that are close to each other, dependent on the mode, can be correlated. For example, in the knock ins, if a bubble is hit, its likely that a nearby asset will also be hit.