Futures and options help both hedgers and speculators manage their risk and diversify their portfolios across major asset classes. It can be a challenge to learn what trading strategy will be the most effective in certain market conditions. 

The Strategy Simulator is designed to give market participants an environment to learn how an option, futures, or cash (also referred to as physical) strategy will perform based on different underlying price scenarios.

How the simulator works

By selecting one of the five random underlying scenarios, users can test a position’s performance through the underlying simulator to visualize how the position reacts to different underlying price movements.

Additionally, profit and loss are calculated and charted for the user. The Strategy Simulator also allows you to add multiple position scenarios using the same contract expiration so you can visualize how the different positions perform in comparison to each another. Additional functionality allows the user to apply “what if” scenarios to visualize how the position reacts to changes in volatility and the effect of time decay.

The Strategy Simulator can be a valuable tool to view how different trading strategies will react to various market conditions. 

Try the Strategy Simulator

Test your knowledge


In case you didn’t know, the CFA Institute allows its members to self-determine and report continuing education credits earned from external sources. CFA Institute members are encouraged to self-document such credits in their online CE tracker. CME Institute offers a variety of courses, webinars, and white papers to support your professional education.

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