Introduction

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 Aldrich Center of Excellence training course will highlight:

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

Objectives

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

Training Methodology

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.

Organizational Impact

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

Who Should Attend?

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