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Abstract
Using professional trading software leads to better understanding of options than traditional lecture or simulated trading platforms. Pedagogical studies consistently demonstrate the advantages of experiential learning with regards to heightened student involvement, long-term retention and better preparation for careers. Simulated options trading platforms are popular supplemental learning tools for course in financial derivatives due to the ease of use and the ability to monitor student performances. The inclusion of professional trading software allows students better clarity for how the options markets work allowing for deeper understanding and longer-term retention. An anonymous survey of 32 questions of 60 students and alumni from Illinois Institute of Technology was conducted. The questions revolved around demographic information, trading experiences, classroom experience and student experience of trading platforms including professional platforms of Thinkorswim, OptionsHouse or the simulated platform of StockTrack. The study finds students using a trading platform to only a traditional lecture have better understanding of the overall market, the role of risk management in trading, spread strategies, the language of traders, order types and finding a job post-graduation. The results also find the inclusion of a professional trading platform such as Thinkorswim as opposed to the simulated platform enhances even further learning of the financial markets.