Energy Trading & Risk Management: VIRTUAL DELIVERY

This course, held over four sessions, is designed to provide a thorough background to the tools and techniques of Energy Trading & Risk Management. These sessions are clearly structured to cover the instruments and market characteristics in depth, addressing the specifics of modeling energy products and risk management application of these instruments. Risks are defined in the context of energy markets including main approaches to estimating and calculating value-at-risk. The practical case studies will ensure you discuss areas of concern that might arise from your day-to-day work and enable you to put into practice any theory discussed.
The course is highly interactive, making use of practical exercises and case studies, designed to give insight and reinforce learning objectives.

Start Times Days 1 - 4: 09.00 London - 12.00 Dubai - 16.00 Singapore
End Times Days 1 - 4: 12.00 London - 15.00 Dubai - 19.00 Singapore

All course payments must be received one day prior to the start date

The detail of each day's content is provided below.

Course Information

Price £1,850 + VAT
Duration 4 days
Location Virtual: EMEA/Asian Time Zone
Available Dates

Who Should Attend

From Financial Service providers, Investment Banks, Brokerage Firms, Energy Companies, Energy Hedge Funds, Exchanges, Regulators, Consultancies and Solution Providers:

  • Commodities & Energy Trading
  • Derivatives Trading
  • Derivative Sales & Marketing
  • Derivatives Pricing
  • Derivatives Structuring
  • Risk Management & Analysis
  • Energy Analysis, Research & Development
  • Portfolio Management
  • Financial Control
  • Compliance and Internal Audit

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content


  • Session 1: The Physical Markets

- Oil, natural gas, coal, electricity

o Where energy sources come from

o Reserves, supply and consumption

o Getting energy from source to customer

  • Session 2: The Evolution of Markets

- Characteristics of different markets

o What makes a - good - market

- Market Drivers

o Fundamental, Geopolitical, Technicals

  • Session 3: Understanding Market Behaviour

- How markets work and behave

EXERCISE - Arbitrage

- Related Markets: Freight, Emissions


  • Session 4: Understanding Market Behaviour

- Markets driving industry direction

EXERCISE - Emissions

  • Session 5: Physical Trading

- Pricing Physical Commodities

- Specific v Generic Trading

- Operations

  • Session 6: Trading Instruments

- Physical, forwards, futures, swaps, options

o Relationship between physical and derivative

- Derivatives

o How they work

o Why different markets trade different instruments

- Options

EXERCISE - Options: Value of Probability

o Physical/Real options


  • Session 7: Trading Risk - Price Exposure

- Long and Short

o Exposure diagrams

o Basis vs Outright risk

- Hedging physical positions with different instruments

EXERCISE - Using Exposure Diagrams

  • Session 8: Financial Quantification of Risk

- Pricing Models - Commodities cf FX/IR

- Applications

o Commodity Options

o Trading Risk - Value-at-Risk (VaR)

o Credit Risk

  • Session 9: Trading Businesses and Strategies I

- The roles and strategies of different participants

o Supply balancers - producers, integrated refiners

o Asset traders - refiners, storage, arbitrage

CASE STUDY I - Refinery Economics


  • Session 10: Trading Businesses and Strategies II

o Traders and banks, Investors and speculators

CASE STUDY II - Refinery Margin Hedging

o Power and gas - balancing

o Corporates - hedgers

  • Session 11: Best Practice Risk Management I

- Measuring and managing risks

o Portfolio VaR, Stress-testing, Historical v Monte Carlo

o Other Risks in Commodity Trading

CASE STUDY - Ashanti Gold

  • Session 12: Best Practice Risk Management II

- Regulation

- Risk control framework

o Authority and responsibility

CASE STUDY - Barings Bank