ICE Education and partners have combined their expertise to provide an innovative and practical programme covering all aspects of the physical crude oil, products and traded derivatives market through our market leading Oil Trader Academy.
Delivered live online in eight 2-hour sessions over 4-days (with a break day in the middle), 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) for 4 days.
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.
All course payments must be received one day prior to the start date
Download the course overview and agenda
|£2,750 + VAT
|Virtual: EMEA/Asian Time Zone
Who Should Attend
Practical approaches are an important element of the Academy. For example, throughout Module 2 you will have access to a fully operational trading system and undertake a series of 'trading games' to help you gain first-hand experience and knowledge of applying the physical and paper concepts common to the oil trading environment. A very interactive course ideal for those working in roles linked to : refiners, economists, analysts portfolio managers, risk managers, operations managers, brokers and other related front, middle and back office staff.
Module 2: Trading Simulation and Managing Price Risk (Break day on Wednesday)
What is trading and why do companies trade. Explains some trading terminology. What is a crude oil derivative? What is the difference between forwards, futures, swaps, and options are? How they are connected, EFP, EFS. How a futures exchange works. How traders use crude oil.
Simulations: Up to 3 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 Brent 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 Brent and WTI futures within a VAR trading limit
- Cargo Price Exposures:
What is physical cargo trading. Physical delivery terms. Factors that influence supply/demand. Crude oil quality. Contractual considerations. Price reporting agencies - who are they and what they do. Explains floating prices and benchmark prices. What is crude oil differential trading?
Simulations: 2 trading simulations where delegates will be able to trade North Sea and West African physical crude oil cargoes
Explains physical arbitrage. Different aspects of crude oil. Voyage chartering/Time charter. Bareboat charter. Contract of affreightment. Worldscale - what it is and how it works. Operational costs of arbitrage. Financial risks. When traders arbitrage. Netback calculation
Simulations: 2 trading simulations where delegates will be able to trade American, North Sea and Middle Eastern physical crude oil cargoes, charter vessels and manage price risk exposures
Why hedge. Basis risk. Swaps as hedging instruments. Types of hedging. A detailed example of hedging fixed price/floating price cargoes. Operational impact on pricing.
Simulations: Up to 3 trading simulations where delegates will be able to apply arbitrage and unwinding hedges and charter vessels as physical cargoes price in/out
What is storage/why store oil. The costs/benefits associated with storing oil. When traders store oil. Types of market structure. How to hedge a storage play. Intrinsic and Extrinsic Value.
Simulations: 2 trading simulations where delegates will be able to store American and European crude oil cargoes and apply hedges to capture the storage play
- Team Dynamics:
How to extract value from a physical crude oil portfolio. Why speedy evaluation of opportunities is critical. Why teamwork is important. Applying all the trading concepts learnt across a portfolio. Understanding the value of tenders.
Simulations: Working as a team, the delegates will apply all the trading concepts across a portfolio of crude oil cargoes, trading spot cargoes, entering tenders, hedging, arbitrage, seeking storage opportunities and speculatively trading the futures markets with flat price and spreads positions.