In this article, Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025) analyzes how the famous Chinese strategic quote “知己知彼，百战不殆” (know yourself and know your opponent, and you will never be defeated), derived from Sun Tzu’s The Art of War, functions as a foundational principle in modern Business strategy, … Read more
In this article, Anirudh KUMAR (B.S. Economics, IIT Kanpur, with a minor in Artificial Intelligence and Machine Learning) shares his experience as a machine learning research intern. From February to August 2024, he worked under the supervision of Professor Swagato Chatterjee on a study of how people respond to Facebook communication about hydrogen fuel cell … Read more
In this article, Isaac FAINSTEIN, Director at Petrini Valores and Visiting Lecturer at IESEG School of Management (Lille), shares his professional experience as a trader in illiquid fixed income and emerging markets — and what practitioners know that most finance courses never cover. About Petrini Valores Petrini Valores is an Argentine broker-dealer specializing in fixed … Read more
Dans cet article, Hubert RODARIE (président d’honneur de l’Association française des investisseurs institutionnels — Af2i) présente son dernier ouvrage, L’Europe face à Trump, paru en mai 2026 aux éditions ESKA. Trump sera-t-il un accident de l’Histoire ? Cette question est au cœur des analyses véhiculées par les médias. Faut-il considérer l’élection de Donald Trump comme une … Read more
In this article, Frédéric VALOGNES, lecturer, author and Certified European Financial Analyst (CEFA®), examines whether the dynamics of the implied volatility surface may provide a decision-support framework for systematic cash-secured put strategies. Abstract The Black-Scholes-Merton model remains one of the most influential developments in modern financial economics. Whilst its mathematical formulation continues to provide the … Read more
Is there ever a “safe” time to invest money in financial markets? Many investors spend their careers searching for the perfect seasonal window, waiting for “calmer” months to risk their capital, or fearing specific periods like the infamous “October effect”. However, Mark Twain, as a cynical observer of human nature, suggests that our search for … Read more
In this article, Anis MAAZ (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2023-2027) explains how algorithmic trading works, from rule-based strategies like market making, arbitrage, and momentum to modern machine learning models and the systems that run them. The goal of this post is to give a clear, realistic overview of today’s algo … Read more
In this article, Alexandre LANGEVIN (ESSEC Business School, Global Bachelor in Business Administration (BBA), 2022-2026) explains how duration and convexity allow investors and risk managers to measure and anticipate how bond prices react to changes in interest rates, and why the distinction between the two matters in practice. Introduction Bond markets sit at the heart … Read more
In any asset management class, students are taught that diversification is a key to unlock mathematically optimal risk-adjusted returns. However, Warren Buffett, one of the world’s most successful investors, would beg to disagree: to him, “diversification is protection against ignorance. It makes little sense if you know what you are doing.” In this article, Hadrien … Read more
Most Read Articles about Derivatives on the SimTrade Blog This monthly selection highlights key articles on derivatives, chosen based on their pedagogical value, practical relevance, and readership engagement. ▶ Jayati WALIA Brownian Motion in Finance ▶ Akshit GUPTA Option Greeks – Vega ▶ Shengyu ZHENG Pricing barrier options with analytical formulas ▶ Tianyi WANG Understanding … Read more
In this article, Mathis HOUROU (ESSEC Business School, Global Bachelor in Business Administration (GBBA) 2022-2026) explains why Private Banking’s client segmentation is not just about sales, but also a crucial risk management tool for banks. Introduction In business school, we learn that client segmentation is a commercial tool. In Private Banking, it is used to … Read more
In this article, Mathilde JANIK (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2025) comments on two quotes that bridge the gap between financial philosophy and personal development: one from the world’s most successful investor, Warren Buffett, and another from the self-help pioneer, Napoleon Hill. These quotes collectively highlight the profound truth that success … Read more
In an era dominated by instant trading for individuals, high-frequency trading firms, ever-faster market infrastructures, and social-media-driven market narratives, patience has become an underrated virtue. In this article, Hadrien PUCHE (ESSEC Business School, Grande École Program, Master in Management, 2023-2027) comments on Charlie Munger’s famous quote about the role of patience and discipline in long-term … Read more
In this article, Saral BINDAL (Indian Institute of Technology Kharagpur, Metallurgical and Materials Engineering, 2024-2028 & Research assistant at ESSEC Business School) presents two statistical models used in finance to describe the time behavior of asset prices: the arithmetic Brownian motion (ABM) and the geometric Brownian motion (GBM). Introduction In financial markets, performance over time … Read more
In this article, Ian DI MUZIO (ESSEC Business School, Master in Finance (MiF), 2025–2027) discusses how valuation practitioners use trading comparables and precedent transactions when no truly “perfect” peers exist, and how to build a defensible valuation framework in Mergers & Acquisitions (M&A) for hybrid or niche sectors. Context and objective In valuation textbooks, comparable … Read more
In this article, Alberto BORGIA (ESSEC Business School, Global Bachelor in Business Administration (GBBA), Exchange student, Fall 2025) explains about EBITDA, how it can be used, its advantages and disadvantages. Introduction Earning Before Interest, Taxes, Depreciation and Amortization (EBITDA) is ones of the most used financial metric and its goal is to understand a company’s … Read more
Top Searched Finance Articles on the SimTrade Blog Based on Google search queries, the following ranking presents the ten most frequently searched articles on the SimTrade blog in 2025. These posts cover key topics in financial markets, quantitative finance, risk management, derivatives pricing, and macroeconomic analysis. ▶ Jayati WALIA The historical method for VaR calculation … Read more
In this article, Adam MERALLI BALLOU (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2026) introduces the Secondary Market in Private Equity. Introduction Over the past decade, the private equity secondary market has undergone a profound transformation. Originally conceived as a marginal liquidity outlet for constrained investors, it has progressively become a central component … Read more
In this article, Iris ORHAND (ESSEC Business School, Global Bachelor in Business Administration (GBBA), 2021-2026) shares a technical article about risk-based audit. Introduction Financial statements are not audited by “checking everything”. In practice, auditors use a risk-based approach: they identify what could materially go wrong, link those risks to specific financial statement assertions, and then … Read more
In this article, Daniel LEE (ESSEC Business School, Global Bachelor in Business Administration (GBBA) – 2023-2027) explains how to network to land internships. Introduction Finance is a highly competitive industry, whether it is investment banking, private equity or consulting roles. In 2025, Goldman Sachs’ summer internship acceptance rate was 0.7%. Candidates must stand out with … Read more
