Huntington Students Battle Hofstra Commodities Challenge
Commodities trading can be so fierce it’s sometimes compared to hand-to-hand combat. Huntington High School students Kelsey Ferrari and Erica Meyer experienced a taste of just how competitive it can be when the pair participated in mock trading against other teenagers from 15 Long Island schools in the Hofstra/NYMEX Commodities Challenge.
Participants were given a simulated $100,000 account to use in their trading battle over the February crude oil futures contract. Ms. Ferrari and Ms. Meyer worked as a team to determine which high school could gross the most profit. The Huntington pair finished fourth in a field of 17 high school teams in the electronic trading competition.
Competitors initially utilized computerized electronic trading, which is a relatively new innovation in this arena. The final segment of the competition involved the historical method used for years on the New York Mercantile Exchange, namely open outcry trading, where orders are shouted out and reinforced with hand signals.
NYMEX has traditionally offered the Commodities Challenge to America’s best collegiate business schools. The new partnership with Hofstra allowed leading Long Island high school students to gain this unique experience. The honor of being invited to participate in such a prestigious event wasn’t lost on the two Huntington students.
Experts taught participants the basic mechanics of open outcry trading along with the intricacies of the oil futures market. The professionals later evaluated the teenagers as they staged mock trading sessions in a replica of the pit used on Wall Street. In the individual outcry segment, Ms. Meyer finished 10th out of 30 competitors and Ms. Ferrari placed 15th.
“In open outcry trading, the traders stand in a trading pit and call out prices and quantities that indicate their willingness to buy or sell,” explained Lauren Thomas, a Huntington economics teacher who worked with Ms. Ferrari and Ms. Meyer. “They use hand signals to convey the same information since it can be difficult to hear if everyone is shouting at once. Open outcry is an efficient means of price discovery, allowing buyers and sellers to arrive at the best prices given the supply and demand for a given futures or options on futures contract. Its speed and efficiency have been further enhanced by the introduction of a variety of trading floor technologies.”
Joseph Leavy, Huntington’s director of humanities, was more than pleased with the school’s presence at Hofstra. “Lauren Thomas has worked very hard at preparing these two young women and supporting and coaching them in the process,” Mr. Leavy said. “I am so proud of the way they were able to research and prepare for this important and well respected interscholastic competition."
"Being invited to participate in the Commodities Challenge at Hofstra was an honor,” Ms. Ferrari said. “Learning about electronic trading through computers and open outcry trading was exciting and unique. Erica and I worked hard together to trade commodities on the computer the first week. The second week was more energetic as we verbally traded in a pit with about 30 other students. Meeting and receiving tips from professional traders was extremely helpful when competing. I am very lucky to have been selected to participate in this rewarding competition. I've learned so much about the trading system and may continue to study it in college next year."
"The Commodities Trading Challenge was an amazing first hand experience for my students,” Ms. Thomas said. “Not only did Erica and Kelsey learn about the commodities market from valuable experts in the field, but they actually got to experience the stress and excitement of trading future contracts of oil in a real-time trading setting.”
"I was deeply honored when I found out that I was chosen to participate in the Commodities Challenge,” Ms. Meyer said. “Learning about the commodities market and the methods of trading, both on the computer and open outcry, was extremely stimulating. An opportunity like this doesn't come around often and I feel so lucky to have participated. I strongly suggest if anyone is given the chance to participate in the future that they jump at this great opportunity."
The Huntington duo left a definite impression on both their competitors and the professionals involved in the unique program. “I am extremely proud at how well they represented Huntington,” Ms. Thomas said. “The hard work that Erica and Kelsey displayed throughout the two day competition was not only recognized by me, but also by those running the program and the professional traders, which was a huge honor for the girls. While the girls were disappointed in not taking home the top prize, Huntington looks forward to participating again next year. This was a great experience.”
All graphics, photographs, and text appearing on the Huntington Public Schools home page and subsequent official web pages are protected by copyright. Redistribution or commercial use is prohibited without express written permission. Comments or Questions? email the Public Information Office