Course Summary
In the fast-paced world of futures, mistakes can be costly. Princeton Energy Programme’s “Fundamentals of Energy Futures” allows delegates to experience this fascinating field first hand. This highly interactive workshop is a great introduction to exchange traded futures contracts. Delegates will leave with an in-depth knowledge of futures contracts and markets – specifically those related to energy. This introductory, one-day course includes a trading simulation and a comprehensive review at the end of the day.
8 CPE credits awarded for this course.
Our class sizes are limited to 20 delegates to ensure maximum individual attention.
Who Should Attend?
Class delegates include everyone from trade support staff all the way up to senior management — anyone who needs to learn the basics for the first time or sharpen their skills on futures terminology and trading. This programme deals with many different energy commodities, including oil, gas and electricity.
Prerequisites:
As this is a fundamental course, there are no prerequisites.
Pre-classroom Study:
As part of our blended learning package, this workshop has a specific web-based course which is recommended as pre-classroom study. Upon registering for the workshop delegates will receive details of how to access the web-based course. Access to the web-based course is included in the price of the classroom course. To optimize your classroom experience, it is recommended you take the appropriate online study as close to the classroom date as possible. The recommended pre-classroom study for this workshop is PrincetonLive.com’s A Guided Tour of Commodity Derivatives.
Course Contents
- The development and characteristics of futures contracts
- Where and how energy futures contracts are traded
- Delivery of futures contracts
- Long vs. Short positions
- How to mark-to-market (realized vs. unrealized profits and losses)
- Players in the futures markets (hedgers, speculators and locals)
- Intermonth, intercommodity and intermarket spreads
- Measuring the market with volume and open interest
- The importance of liquidity
- The roles of the clearinghouse
- The use and purpose of Initial and Variation Margins
- Other delivery options: ADPs and EFPs
- The problems of basis risk
- Types of orders: Stop, Limit, and Market
