ICE Education and Two Two Five bring their expertise in the physical and derivative European natural gas markets and electronic trading to bring to you this innovative program.
Delivered live online in eight 2-hour sessions over 4-days, the trading concepts will be decoded in a bite-sized manner to reveal the key methodologies and intricacies behind them.
In addition, you will be able to practice what you have learnt by playing realistic trading scenarios via a unique trading simulator allowing you to experience the psychological challenges a trader has to endure daily.
Each concept features:
1. An interactive digital pre-read featuring videos, tutorials, and quizzes to reinforce your understanding of the concept. This will take 1-hour to complete
2. A 2-hour live online session hosted by a former trader who talks through the concept in detail, and how it's applied in the real world. The delegate to TwoTwoFive facilitator ratio is kept at a maximum of 4:1 to ensure every delegate can be coached during the trading simulations. The live online session is streamed twice per day: 8 am - 10 am (London)/4 pm - 6 pm (Singapore) and 11 am - 1 pm (London)/7 pm - 9 pm (Singapore) on a Monday, Tuesday, Thursday & Friday (Wednesday is a Break day).
3. Access to the unique trading simulator with fellow course attendees to practice trading
4. A knowledge check. On completion of the course, a pass certificate and 24 CPD will be awarded.
|£2,750 + VAT
|Virtual: EMEA/Asian Time Zone
Who Should Attend
- If your work is affected by the changes to the international price of oil
- oil industry staff working supply, trading risk management, refining, finance, transportation and E&P
- Oil trading and distribution companies
- Energy-related government departments
- Purchasing, planning and finance departments in major energy consumers
- Energy publications
- Bankers, accountants, auditors and others associated with oil companies and oil financing.
Derivatives: What is trading and why do companies trade. The major gas hubs. What is a gas derivative? What is the difference between forwards, futures, swaps, and options? Explains some trading terminology. How a futures exchange works. How traders use gas derivatives.
Simulations: 2 trading simulations where delegates will be able to trade futures, swaps, and forwards
Trading Best Practice: What is risk? The different types of risk - price, credit, operational, reputational. How risk can be managed successfully by a trader. Technical analysis. How risk is measured, what is VAR and how is it used. Trading lessons - common pitfalls.
Simulations: 2 trading simulations where delegates will be able to trade NBP, ZBR, PEG, TTF and NCG futures within a VAR trading limit.
Time Spreads: What is spread trading/different types of spread. Principles of spread trading. What a forward curve is and market structure. Different types of market structure and what they signify. How traders use time spreads.
Simulations: 2 trading simulations where delegates will be able to trade NBP and TTF futures within a trading limit.
Pricing Exposures: Term contracts. Spot contracts. Oil Indexation. Pricing periods. Price risks - oil v gas. Natural gas trading issues. Factors that influence supply. Factors that influence demand. Natural gas quality. Managing nat gas price risks.
Simulations: 2 trading simulations where delegates will be able to trade NCG, TTF, and NBP futures.
Arbitrage: Explains physical arbitrage. Gas pipelines. Trading geographical spreads. Costs to move gas. Valuing pipeline capacity. Optimisation of pipelines.
Simulations: 2 trading simulations where delegates will be able to trade around pipeline capacity between NCG and TTF markets.
Hedging: Why hedge. Basis risk. Futures as hedging instruments. JKM swaps as hedging instruments. Hedging considerations. Types of hedging. A detailed example of hedging floating price cargoes. Futures or swaps? Dirty or imperfect hedging.
Simulations: 2 trading simulations where delegates will be able to apply hedges to long term contract pricing priced off oil and gas as the gas prices in.
Storage: What is storage. Why companies might want storage. The costs associated with storing natural gas. Valuing storage. Optimisation of storage. Types of market structure. How to hedge a storage play. Intrinsic and Extrinsic Value.
Simulations: 2 trading simulations where delegates will be able to utilise withdrawal and injection rights to store TTF and NBP gas and apply hedges to capture a storage play.
Team Dynamics: How to extract value from a gas portfolio. Why speedy evaluation of opportunities is critical. Why teamwork is important. Applying all the trading concepts learnt across a portfolio.
Simulations: Working as a team, the delegates will apply all the trading concepts across a portfolio of gas positions, hedge long term contracts, pipeline arbitrage, seeking storage opportunities and speculatively trading the futures markets with flat price and spreads positions.