Stockfuse Trading Game FAQ
This blog post is outdated. Please refer to the Stockfuse Wiki for the latest FAQ.
Where can I find tutorials on using Stockfuse?
Please visit the Stockfuse Wiki!
What happens if I submit a trade outside of market hours?
Your trade will be queued for execution when the market reopens. For US equities, this is 9:30 a.m. EST on the following business day. Since all trades are executed at the latest market price, it is not guaranteed that you’ll receive the exact opening quote.
Can I have multiple trading portfolios? I’d like to test different strategies.
Absolutely. By default, everyone is enrolled in our flagship Stockfuse Continuum Game. If you need a different portfolio, just create a new game for free!
Why is the price I received somewhat different from the current market price?
Stockfuse uses proprietary Transaction Cost Models to account for market impact and to quote more realistic prices. This market impact tends to be close to zero for most trades executed on Stockfuse. However, if you purchase a large quantity of an illiquid stock, the market impact can be substantial. Intuitively, if you execute a large buy order, the market will not be able to absorb it and the execution price will rise in order to attract sellers. This market dynamic is accurately reflected on Stockfuse. For more information about our Transaction Cost Model, please refer to New @ Stockfuse – Transaction Cost Model.
Does Stockfuse charge commissions? Are there bid/ask spreads in trading?
Sometimes – commission and slippage vary from game to game. When you are on your game Dashboard, click on the “Action” button in the top-right corner, then select “Game Rules” to see the trading costs for the game.
What is price target? Why are some of my price targets hidden?
Price target is where you think the stock is headed. If your price target is “irrational” (e.g., you’re buying a stock but your price target indicates that you think the stock is going down), then the price targets will be hidden.
It’s cumbersome to type in rationale. Can it be made optional?
Investment rationales are as important as your trading performance, if not more. Performance can be driven by luck, but investment rationales more accurately reflect your thought process and analytical skills.
Investment rationales are particularly important if you are trading in one of our bank-sponsored trading games. Administrators read and score your rationales and identify trading talent accordingly. So take your write-ups seriously!
Does Stockfuse pay dividend?
Yes. Dividend is automatically added to your cash balance on the payment date.
Does Stockfuse adjust for stock splits?
Yes. When a stock split occurs, we automatically adjust the number of shares, average cost per share, and your price target.
How come cash can be negative?
Stockfuse provides Regulation T-compliant margin accounts. Stockfuse Continuum, for example, provides $100,000 in initial cash, but allows you to purchase up to $200,000 worth of stocks. This is called “trading on margins.” For more information, read Understanding Stock Margin Account.
Does Stockfuse issue margin calls?
Yes. If we project that your SMA (Special Memorandum Account) will be negative at the end of the day, we’ll send you an email alert. You should take action to ensure margin compliance. If your SMA is less than –$3000 at 4:00 p.m. EST, we’ll liquidate some of your positions to bring your SMA positive.
Why can’t I trade micro-caps?
Stockfuse Continuum only allows you to trade stocks with a minimal market cap of $100 mn. However, you can create your own game and set the minimal market cap to any number you want!
I don’t want others to see my trades. Is that possible?
All trades in Stockfuse Continuum are public – after all, stockfuse is an idea sharing platform! If you’d like some privacy, just create a new game and email us at info [at] stockfuse.com to make it private.