Petroleum Products Trader Program - Simulation Based: VIRTUAL DELIVERY

ICE Education and Two Two Five bring their expertise in the physical and derivative oil product markets and electronic trading to bring to you this innovative program that utilises a revolutionary trading simulator that ensures practical hands on experience of 'real market scenarios' in a unique learning experience.

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)/3 pm - 5 pm (Singapore) and 11 am - 1 pm (London)/6 pm - 8 pm (Singapore) on a Monday, Tuesday, Thursday & Friday (Wednesday is a Break day).
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.

Course Information

Price £2,500 + VAT
Duration 4 days
Location Virtual: EMEA/Asian Time Zone
Available Dates

Who Should Attend

  • If your work is affected by the changes to the international price of oil
  • oil industry staff working supply, trading risk management, refining, finance, transportation and E&P
  • Oil trading and distribution companies
  • Energy-related government departments
  • Purchasing, planning and finance departments in major energy consumers
  • Energy publications
  • Bankers, accountants, auditors and others associated with oil companies and oil financing.

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

Day 1:

Derivatives: What is trading and why do companies trade. Explains some trading terminology. What is an oil products derivative? What is the difference between forwards, futures, swaps, and options? How they are connected, EFP, EFS. How a futures exchange works. How traders use oil product derivatives.

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 RBOB and LSGO 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 LSGO and RBOB futures within a VAR trading limit

Pricing Exposures: What is physical cargo trading. Physical delivery terms. Physical trading of oil products. Types of products and the refining process. Factors that influence supply. Factors that influence demand. Oil product quality. Contractual considerations. Price reporting agencies - who are they and what they do. Explains floating prices and benchmark prices. What is oil product differential trading

Simulations: 2 trading simulations where delegates will be able to trade Gasoline, Jet, Heating Oil and Gasoil physical cargoes

Day 3:

Arbitrage: Explains physical arbitrage. Different aspects of refined products. 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, European and Asian Pacific physical oil products cargoes, charter vessels and manage price risk exposures.

Hedging: 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

Day 4:

Storage: 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 oil product cargoes and apply hedges to capture the storage play.

Team Dynamics: How to extract value from a physical oil products 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 oil products cargoes, trading spot cargoes, entering tenders, hedging, arbitrage, seeking storage opportunities and speculatively trading the futures markets with flat price, spreads and crack positions.