Price | £2,900.00 + VAT |
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Duration | 4 days |
Location | Virtual: EMEA/Asian Time Zone |
Available Dates |
Day 1:
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.
Day 2:
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.
Day 3:
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.
Day 4:
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.