Introduction to Energy Futures and Options

The course provides a thorough knowledge and understanding of Futures and Options including market terminology, pricing, and basic trading strategies. It will also explore the exchange mechanisms and uses of futures and options in price risk management. This course provides a solid foundation for the 'Energy Derivatives Workshop' and, or, the 'Options Strategies & Risk Management Programme'.

Course Information

Price £750.0 + VAT
Duration 1 day
Location London
Available Dates
2018-11-19 00:00:00.0  Register Now
2019-02-11 00:00:00.0  Register Now
2019-07-01 00:00:00.0  Register Now
2019-10-28 00:00:00.0  Register Now

Who Should Attend

  • New traders and brokers
  • New entrants to the futures and options 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

Morning Session - Futures

Basic Concepts

  • History of futures
  • Definitions and terminology

The Clearing House and Futures

  • Role of the clearing house
  • Initial and variation margin
  • Collateral

Characteristics and Pricing

  • Profit and loss
  • Rights and Obligations
  • Underlying
  • Basis
  • Contango/Backwardation

Trading and Uses of Futures

  • Hedging
  • Speculation
  • Arbitrage
  • Basic trading strategies

Contract specifications

  • Deliver procedure
  • Settlement and Expiry

Afternoon Session - Options

Basic Concepts

  • History of options
  • Definitions and terminology

Principles of Pricing

  • Profit and loss
  • Rights and obligations
  • Time value and intrinsic value
  • Pricing variables
  • Exercise and abandonment

Contract specifications

  • Trading months and strike prices
  • Settlement and Expiry

Trading and Uses of Options

  • Hedging
  • Performance enhancement
  • Basic options strategies
  • Basic trading strategies

The Clearing House and Options

  • Role of the clearing house
  • Futures and equity style margining
  • Collateral