The Johannesburg Stock Exchange (JSE) has introduced its virtual trading game (VTG), in an effort to promote financial literacy in SA.
This, as the country continues to face the challenge of a low financial literacy rate and a poor savings culture.
The Human Sciences Research Council found that poor financial literacy is hindering South Africans’ ability to save, with 48% of people not being able to save at all, while 42% reported having no long-term savings of any kind.
According to the JSE, the VTG is a virtual trading platform that simulates a real trading environment and gives members of the general public a risk-free opportunity to trade shares.
This, notes the stock exchange, presents the ideal opportunity for individuals to gain knowledge and learn to invest their money wisely.
“The VTG is designed to help those participating to learn about the fundamentals of investing and encourages them to research and strategise around trading of JSE-listed instruments,” says Vuyo Lee, JSE director for marketing and corporate affairs.
“Participants test their trading skills through a simulated trading programme where performance is tracked and measured.”
Lee points out that as the continent’s biggest stock exchange, the JSE wants to play an active role in creating a financially literate society in the country.
“What better way to do this than to allow South Africans to gain real life skills in investing and trading on the stock exchange while participating in an exciting game.
“Considering the urgent need to boost South Africans’ financial literacy skills, the VTG provides the ideal opportunity for people to gain real life skills in investing and trading on the stock exchange, while participating in an exciting game with a chance to win investment vouchers,” she adds.
In addition to the game, people stand a chance to win cash prizes for their participation.
Each VTG participant receives a virtual R1 million to build an investment portfolio and is free to trade on the market. The rankings on the leader board are based on the holdings (gains and losses) of each player, and the participants need to trade shares and exchange traded funds only. They will also benefit from earning interest on their cash balance.
The competition will run until 23 September, with R100 000 up for grabs in investment vouchers. Winners will be announced on 28 September, says the JSE.
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