Introduction to Commodity Derivatives

This classroom based course is aimed at delegates with little or no existing knowledge of commodity derivatives. These sessions are led by experienced traders and trainers who engage to bring theory to life through real-world insight to the derivatives markets.The aim of this program is to provide you with the basic concepts and tools of the Commodity Derivative markets. We draw on markets representative for all delegates to ensure relevance to every situation.

This course is comprised of three parts:
1. Pre-course: Access to the ICE Education learning platform for on-demand primer content.
2. Classroom Sessions: These are short focused sessions with practical activity and interaction throughout.
3. Post-course: On-demand content remains available and an optional live video clinic session is scheduled for one week post course for any learning points you'd like to revisit.

Course Information

Price £750 + VAT
Duration 1 day
Location London
Available Dates
Sep 13 2021  Register Now
Nov 15 2021  Register Now

Who Should Attend

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

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

Session 1

- Introductions

- Course structure & agenda

- Derivatives

o Definitions

o Key types

o Comparisons with trading physical

o Underlying asset classes

o Derivatives exchanges

- Q&A session

- Exercises

Session 2

- Futures

o Definition

o Standardised features

o Examples

o Settlement & marking-to-market

o Clearing & margin

- Q&A session

- Exercises

Session 3

- Futures continued

o Futures v forwards

o The order-trade-clearing process

o Trading physical v trading futures

- Key language

- Understanding a trading screen

- Q&A session

- Exercises

Session 4

- Evolution of derivatives

- Using derivatives:

o Hedging

o Speculation

o Arbitrage

- Futures pricing & Fair value

- Cost of carry

o Contango

o Backwardation

- Q&A session

- Exercises

Session 5

- Futures spreads

o Calendar spreads

o Rolling

o Spreads and speculation

o Spread liquidity

- Q&A session

- Exercises

Session 6

- Analysing futures markets

o Fundamental analysis

o Technical analysis

- Introducing options

o Definitions

o Key features

o Comparison with futures

- Course summary

- Explanation of post-course resources

- Q&A session