Electricity Trading & Risk Management

The course will provide participants with a knowledge and understanding of the UK market and its links with the European electricity markets. It will explore the complexity of the markets and provide insight into the risks and opportunities that these markets provide.

Course Information

Price £1,600 + VAT
Duration 2 days
Location London
Available Dates

Who Should Attend

  • New traders and brokers
  • New entrants to the electricity markets
  • Support and operations people involved in the energy markets
  • Sales and marketing personnel
  • Individuals working in organisations such as: trading companies, banks, brokers, oil producers, consumers, refiners, distribution companies, government and associated organisations.

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

Day 1 Market Structure

- Formulation of the market

- Price formulation and drivers

o Merit order

o Carbon markets (emission rights)

o Impact of renewables

o Mean reversion & Seasonality

- European markets

o UK & Continental

o Cross-border transmission capacity

- Market participants (producers, suppliers, TSOs)

o Exchange members

Dispatch & asset-backed trading

- Balancing

o Intraday / prompt markets

- Market coupling

o Day ahead markets & Daily auctions

- Hedging

o Forward markets & the application of power futures


- Reasons for trading (why?)

- Trading venues (where?) (e.g. ICE)

- Trading platforms (how?) (e.g. WebICE)

The Trading Organisation

- The setup

- What is required?

- Trading methods

Day 2 Risk Management in Markets

- Market risk

o Short-term vs. Long-term

- Counterparty (credit) risk

o Margining


- Liquidity risk

o Market liquidity

o Funding liquidity

- Operational risk

Quantifying Risk

- Risk modelling techniques

- Value-at-risk & stress testing

o Parametric, historical simulation & Monte Carlo

o The impact of price volatility

o The relation with collateralization & margining

Trading Methods & Tools

- Use of derivatives

o Futures

o Options

o Swaps

- Screen based trading

This programme will make active use of practical exercises and discussion.