Classroom Dates
05 - 09 Feb 2024 London $5,950

This Overview of Energy Derivatives and Market Operations training course provides an overview of energy derivatives market, the main instruments used in the energy market including the best techniques for derivatives market and their application when valuing energy products. There are various advantages and disadvantages associated with OTC traded products and this aims to explore various trading methods including physical and paper transactions.

The delegates participating in this training course will learn different approaches suitable in mitigating the energy risk exposure by applying forward, future and swaps analysis techniques. This training course will also provide an overview and depth knowledge of option pricing and their applications as a tool to hedge the energy risk exposure.

Examples will be used to show how to evaluate hedging strategies under different risk dimensions in the context of achieving business goals. To maximize the benefit of this training course, delegates should have good Excel skills. 

This Energy Training Centre training course will highlight:

  • Energy derivatives
  • Physical forward and future market
  • Options
  • European call and put options
  • Risk management

This Overview of Energy Derivatives and Market Operations training course is designed to provide the delegates with up-to-date knowledge and practical skills in energy derivatives.

By the end of this training course, participants will learn:

  • How to use futures contracts and options?
  • Fundamental of option pricing
  • Calculating annualized volatility
  • Put call parity
  • Spot and forward contracts
  • Differences between physical and cash settlement contract

This training course will be structured as a highly participative workshop with formal presentations, interactive worked examples, and simulations. Relevant examples are provided to illustrate the application of each of the topics covered. Participants will have the opportunities to learn and apply the various derivatives techniques.

The organisation will benefit from the development and practical application of advanced skills in financial market risk as well as from raised awareness of important recent developments in derivative market.

Specific benefits for the organisation include:

  • Up to date knowledge of the current market dynamics
  • Development of skills in critical analysis and applications of option pricings
  • Raised awareness of new financial opportunities
  • Ability to understand the forward and future market
  • Advanced practical skills in derivate

Participants will benefit from updated knowledge and practical skills in energy derivatives market that will allow them to make a greater contribution to the development and improvement of forward and future contract whilst at the same time enhancing their own career development potential. Participants will have:

  • Deeper understanding of how the derivatives market operates
  • The ability to make financial decisions in a volatile market
  • A good understanding of the call and put options pricing
  • A better understanding of the current market trend
  • Knowledge about the applications of different pricing techniques in derivative market

This Overview of Energy Derivatives and Market Operations training course would be relevant to all of those involved in derivative markets. This includes private individuals, financial and non-financial institutions, non-profit organizations, and government.

This training course is suitable to a wide range of professionals but will greatly benefit:

  • Market risk managers
  • Energy trader
  • Credit risk analyst
  • Financial planning and budgeting professionals
  • Corporate communication and investor relations professionals
  • Traders
  • Investors in general
  • Treasury analyst
  • Risk consultant

Day One: Energy Derivative Market 

  • Physical forward and future market
  • Spot Market
  • Energy Derivatives
  • Energy Derivatives Pricing models
  • Options
  • Call Options
  • Put Options
  • Volatility 

Day Two: Option Style 

  • European Options
  • American Options
  • In the money, at the money and out of the money Option
  • Put Call Parity
  • Digital Option
  • Real Option
  • Perpetual American Option 

Day Three: Swaps 

  • Overview of the Swap
  • Energy Swaption
  • Hedging
  • Delta Hedging
  • Regression analysis
  • Stress Testing
  • VAR 

Day Four: Asset Allocation Strategy

  • Investment Opportunities
  • Required Rate of Return
  • Sustainable Investment Strategies
  • Risk and Return
  • Portfolio Theory
  • Capital Market Theory
  • Asset Pricing Models

Day Five: Efficient Market 

  • Efficient Market Hypothesis
  • Market Anomalies
  • Environmental Finance
  • Behavioural Finance
  • Equity Valuation Models
  • Extreme Portfolio Selection
  • Financial Crises
  • Noise Trading