| BSC006 Financial Trading |
BSC006 Assessment Coursework Brief
Introduction
This module will build on financial market theory gained from other modules within practical and relevant live market environments. Students will see first-hand the difference between what should happen in response to market events, and the actual response seen in real-time.
This module will, through practical application, highlight the realities of taking decisions of risk in today’s financial markets. As students take and manage decisions of risk in live market prices, core theory will be explored in relation to the variability of their trading performance.
The module has been used as a basis to deliver training to senior directors at leading buy-side firms including UBS, Legal and General Investment Management (LGIM), Pictet Asset Managers, The Kuwaiti Sovereign Wealth Fund, Natwest Markets, and Barclays Wealth Management.
Loughborough Business School.
Aims
The aim of this module is to introduce the world of trading and give the opportunity to work both with high-frequency live market data and simulated price action. Students will learn market microstructure concepts, such as bid-offer spreads, liquidity, margin, marking to market, futures, interest rates, stock indexes, currencies, commodities, alternative investment products, leverage among others. Students will learn about the role of hedgers and speculators and other types of traders such as individual traders, portfolio managers, proprietary trading firms, hedge funds and market makers.
This module will give an introduction to technical analysis; hence students will learn how to identify patterns in market data to identify trends and make predictions. The module will also provide a discussion of how macroeconomic events impact financial markets, and how human emotions and psychological biases can adversely affect trading decisions. The module will be delivered using a combination of lectures, classroom exercises and work with a trading simulation software package.
Learning Outcomes
On successfully completion of this module, the student should be able to:
- Explain the arrangements for trading the main classes of financial instruments.
- Critically appraise the theories for why financial trading takes place.
- Identify the different objectives and pressures on buy-side and sell-side trading operations.
- Show through practice how to operate in quote and order-driven markets.
- Manage trading risk within an environment of uncertainty.
- Explain the impact of technical levels on asset prices.
- Critically examine the demand for immediacy, and the role of liquidity, in the functioning of financial markets.
- Explain how liquidity and volatility impact on market makers.
- Identify the challenges for central bank communications and stability.
- Analyse the importance of relationship management for an investment bank to facilitate client flow.
- Assess ethical and reporting issues arising for business transacted in secondary markets.
Subject Specific Skills
On completion of this module, students should:
- Have developed skills in trading of financial portfolios including cash, financial assets and derivative instruments (equity, fixed income, and options).
- Be able to interpret trading data and evaluate its implications for financial markets
- Be able to use a professional software package in a financial trading context
- Be able to analyse the risk exposure of various trading positions/portfolios
- Be able to critically appraise techniques for, and approaches to, risk management.
Key Transferable Skills
On completion of the module students should have acquired and enhanced transferable skills of broad relevance. These should include:
- Advanced use of information technology.
- Interpretation of numerical information and application of skills in analysis and evaluation.
- Communication skills.
Student Preparation for the Module
Students are expected to be familiar with recent developments in financial markets. This will require a daily review of the FT combined with reviewing Bloomberg and Reuters home pages for leading news alongside AmplifyME’s Market Maker Newsletter and Market Maker podcast resources. Specific attention should be given to global political risk, monetary policy changes and the yield curve that will have a significant impact on their trading experience.
Learning and Teaching Approach
Students will be connected directly to AmplifyME’s London trading floor as they research, analyze and strategize for each trading decision made. Students will be encouraged to explore the practical implications of contemporary financial market theory.
Students will need access to a PC or laptop to access the platform. No prior download is required and logins will be provided on Day 1 to operate as a sales and trading desk, asset manager and proprietary trader. All students will receive individual performance reports of their activity in each role combined with reflective advice on how their performance may have been impacted by trading psychology and behavioural finance.
The Trading Process for Exchange and OTC markets, Understanding the Impact of Market moving Information, Liquidity, and Trading, Trading Strategies, Managing Market Risk, Simulated Trading of Financial market instruments.
Content
- Week 1: Introduction
- Weeks 2 and 3: Independent pre-learning-to be undertaken for Week 4 with AmplifyME.
- Week 4: Three full days of training with AmplifyME
Day 1: Asset Management
Day 2: Sales and Trading
Day 3: Live Trader
- Week 5: Summary Session and Coursework discussion with Q&A
Textbooks and Resources
- AmplifyME Weekly Podcast: Market Maker Podcast
- Misbehaving by Richard Thaler
- Thinking fast and slow by Daniel Kahneman
- Trading in the Zone by Mark Douglas
Methods of Feedback
- Feedback given to students in response to assessed work
Individual written feedback on coursework and verbal feedback to in-class simulations.
- Developmental feedback generated through teaching activities
Results of in-class trading simulation and feedback on performance.
Assessment
| Assessment Title | Weight | Assessment Type | Deadline |
| Participation | 5% | Particpation in AmplifyME Training Days | 3 days with AmplifyME |
| Performance in Simulations | 25% | AmplifyME In-Class Tests | 3 days with AmplifyME |
| Individual Report | 70% | Coursework | 11am 23rd April, Week 9 |
Coursework Task
Assessment for the module is by an individual report. 70% of your final module mark will be derived from a reflective report reviewing your experience of behavioural finance in practice.
Answer ONE of the following two questions:
- Psychology of Trading – Select two types of emotional biases (e.g. loss aversion, herding, overconfidence) and evaluate how these biases influence trading behaviours and performance.
- Discuss the following statement “UK Equity markets will set new 2-year highs by the end of 2026?”
Guidance Notes
- Your writing style should be in the style of a report and you should structure the report with an introduction, subsections for analysis, and a conclusion summarizing key points. Use headings, references, visual aids such as graphs and tables where necessary.
- Your report should draw on a range of credible sources beyond just the lectures, i.e. academic journals, financial media, industry data etc. Use these to provide evidence and support for your analysis. Properly cite and reference sources.
- Employ relevant conceptual frameworks and theories from the finance field to structure your evaluation of the topic. For example, risk-return frameworks for assessing trading strategies.
- Include numerical analysis if applicable, such as analysing economic data trends.
- Provide clear explanations of key concepts, theories, and relationships between your topic and real-world practice.
- We will be discussing the coursework in more detail in Weeks 1 and 5.
Word Count and Format
- The word count is a maximum of 1750 words. We will disregard anything you write above 1750 words. Please state the word count on the first page of your report.
- The word count includes any tables or graphs in the report.
- The word count excludes any title page, the reference list at the end of the report, or any appendices. However, resist the temptation to put material that really should be in the main text into appendices
- All material (academic and other) that you cite should be properly referenced in the text and in the reference list (in Harvard style) at the end of your report.
- Ensure you state the question you are answering at the beginning of the report.
- Ensure you put your student number in the Header your report. You can do this using Insert, Header in Word. Your student number should appear on each page of your report.
- Use font size 12, 1.15 line spacing and number the pages.
Coursework Marking Rubric
- Marks will be awarded for demonstrating: Knowledge, Understanding, Analysis, Structure and Clarity. Discussions should demonstrate independent research and wider reading, beyond the lecture notes, Amplify videos and recommended current articles; this may include academic journals and the financial press.
- Reports that primarily consist of quotes from the literature (or textbooks) but show little evidence of analysis or understanding of the material will receive low marks.
- It is essential that all material is properly referenced and that the work of others is acknowledged.
- Below summaries the Key Marking Criteria, Marking Rubric and Assessment Feedback which provides details of the criteria and descriptors of performance on the coursework for the key assessment criterion. These are the criteria against which you will be assessed.
Marking Rubric with Indicative Marks
| Marking Criteria | 0-39 % | 40-49% | 50-59% | 60-69% | 70-79% | 80-100% |
| Focus | General and sometimes inaccurate focus. | Very general statements. | Mostly focused on the question asked. | Good focus on the key question. | Keeps to the point, focus on question. | Highly focused answer. |
| Content | Very basic detail, some inaccurate reporting. | Little detail or explanation, general “headlines” without much supporting text. | Reasonable level of detail. Some key points missed. | Good level of detail and explanation. Most key points covered. | Clear facts, well explained, Good level of detail (not overboard) | Excellent level of detail, very well explained. |
| Use of Models/ Concepts | No basis in theory or accepted models. | Basic use of theory, derived from lectures alone. | Good use of theory, based largely on lectures. | Good use of relevant theories /models / concepts extending beyond the lecture notes. | Very good use of relevant theories and models, extending beyond the lecture notes. | Excellent use of relevant theories and model. |
| Evidence of Research | No citations / references. Statements have no supporting evidence. | Statements often not supported by evidence, few sources cited. | Statements supported, some meaningful research undertaken. | Good referencing, statements supported by evidence. Good sources used. | Wide range of research. Very good sources of data and references. | Excellent use of research material, evidence, sources and referencing. |
| Analysis/ Discussion & Evaluation | No real analysis or application of theories. | Descriptive, shallow, shows basic information without any analysis. | Good attempt to analyse, or prioritise issues. | Good attempt to analyse, or prioritise issues and to draw conclusions. | Evidence of argument, analysis and discussion. Good conclusions drawn. | Strong evidence of argument, critical analysis and discussion. |
| Presentation of Report | Unstructured, messy, spelling and grammar mistakes | Neat and tidy but with no real structure. Some spelling errors. | Well presented with minimal errors. Room for improvement in structure. | Well presented with a good attempt to structure. | Good logical structure, neat and tidy. Good “signposts” (headers / footers / subheadings) | Very well structured and professionally presented. |
Key Marking Criteria
- Focus: Addressing the question set, and clarity of explanations.
- Content: Level of detail and explanation.
- Use of Models/Concepts: Use of relevant concepts, theories and models.
- Evidence of Research: Evidence of wider reading and research.
- Analysis/Discussion and Evaluation: Evidence of critical analysis, discussion and evaluation of ideas or methods, and accuracy of analysis conducted.
- Presentation: Presentation, structure and layout of report, including referencing.
Assessment Feedback
Assessment: BSC006 Financial Trading Individual Report Student ID:
| Marking Assessment Criteria | 0-39 % | 40-49% | 50-59% | 60-69% | 70-79% | 80-100% |
| Focus | ||||||
| Content | ||||||
| Use of Models/Concepts | ||||||
| Evidence of Research | ||||||
| Analysis/Discussion & Evaluation | ||||||
| Presentation | ||||||
| Overall feedback comments and areas of strength: Feedback to help you improve future work: Mark: | ||||||
| Student reflections: List up to three actions you will take forward from this feedback. To help you reflect on the feedback provided to enhance future submissions refer to : Feedback on your work | Student Handbook | Loughborough University | ||||||
Acceptable use of Generative AI (GenAI) Tools
Please note the university’s guidance on the use of Generative AI tools in assessed work is available here: Use of Generative AI tools | Student Handbook | Loughborough University If the module team are concerned that the use of GenAI goes beyond what has been defined as acceptable under the above guidance you may be required to attend a meeting to explain your use of GenAI.
Coursework Submission
The deadline date is provided above. One electronic copy must be uploaded to the submission point for the module on LEARN by the submission deadline.
You must use the following file naming convention for your work. You should not include your name anywhere on your assignment. You should also include the filename in the header of your report.
StudentNumber – Module code – Coursework component (e.g. F123456-25BSC006-CW)
Your submission should be one document only (i.e. no loose appendices etc), preferably in Word or as a pdf (not scanned copy). If your assignment consists of different documents in varying formats you will need to embed them in a Word document or convert them to pdf and upload one document. The file size limit for your submission is 20MB.
IMPORTANT NOTE: You need to ensure you back up your coursework and any other important documents. Information on data storage can be found here: http://www.lboro.ac.uk/services/it/student/storage/.
Losing your work through technical failure is not a valid reason for a Mitigating Circumstances claim or a coursework extension request.
Extensions and Mitigating Circumstances
If you have problems with meeting the deadline for this coursework, and you believe your circumstances may qualify you for an extension (please refer to: Coursework extensions | Student Handbook | Loughborough University) you may wish to request a 48-hour extension and/or submit a Mitigating Circumstances claim. This must be requested in advance via:
Coursework Extension Link: Coursework extensions | Student Handbook | Loughborough University
Mitigating Circumstances Link: Mitigating Circumstances | Student Handbook | Loughborough University
Please note that the maximum extension for a group coursework will be 48 hours.
Consultation and Feedback
If you have questions relating to the coursework, just ask! Aside from email, you can ask me during the lectures. In Week 5 we will have a coursework dedicated Q&A session. Note, answers to any questions regarding the coursework will be shared with the entire group to ensure fairness.
Provisional marks and feedback should be available by Friday 22nd May 2026. All marks are provisional until ratified by the formal examination boards
