Fundamentals of Energy Futures (CLASSROOM) - FOEF
Course Summary
Fundamentals of Energy Futures is a one-day course presented by the energy training experts at Mennta Energy Solutions. 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.
Who Should Attend?
Class delegates include everyone in the energy industry 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.
Course Content
- The physical markets
- The development and characteristics of futures contracts
- Physical Market Risks
- Prerequisites for a futures market/contact
- The importance of contract standardization
- Where and how energy futures contracts are traded
- Delivery of futures contracts
- Futures trading timeline
- Long vs. Short positions
- Key energy futures exchanges and contracts
- How to mark-to-market (realized vs. unrealized profits and losses)
- Players in the futures markets
- Types of hedgers
- Speculators
- Market makers
- Role of the futures markets in price discovery
- The importance of seasonality and other supply and demand metrics
- 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
