Week 11 Session: Cryptocurrency Markets
A market-structure lab applying the course's risk and leverage ideas to a simulated crypto position
Session
3 May 2027
A comparison-and-risk-analysis session: checking how much of what you already know about stock exchanges and leverage still holds once the instrument is crypto.
What you’re given
A description of one simulated crypto exchange’s structure (custody model, trading hours, standardisation) and a simulated leveraged long crypto position with its own-money amount and leverage ratio.
What you do
Compare the crypto exchange’s structure point-by-point against Week 2’s stock-exchange mechanics, naming what’s the same and what genuinely isn’t (custody, in particular, has no stock-market equivalent). Then apply Week 5’s position-sizing method to the simulated crypto position and calculate the approximate liquidation price.
What you produce
A short structural comparison table, plus the position-sizing and liquidation-price calculation for the simulated position.
Why it matters
This is the last hands-on session before the semester turns to synthesis in Week 12 — the risk method doesn’t change just because the instrument is new.
The spec
What you bring to the session. Written so a reader can tell whether it has been met without asking you.
- compares one crypto exchange's structure against the stock exchanges covered in Week 2
- applies the Week 5 position-sizing method to a simulated leveraged crypto position
Teaching team
- Marisol Quaye — convenor