Introduction to Hedging in Energy Markets - IHEM 

CPE Credits Awarded: 16
Categories: Trading, Derivatives, Hedging and Risk Management

Course Date Duration Venue Price Registration Deadline Register
11 Nov 2020 2 Days London, UK Country: gb
£ (GBP)1,215.00+20%VAT
9 Oct 2020

COURSE SUMMARY

Introduction to Hedging in Energy Markets is a two-day course presented by the energy training experts at Mennta Energy Solutions. Understanding and identifying how to limit price risk exposure is a complex task. This two-day course will provide attendees with a forum to maximize hedging efficiencies and limit price risk exposure. Delegates will build a portfolio of industry techniques for managing price risk in today's volatile energy markets.

Includes Online Pre-study Module

This course is accompanied by a preparatory course available online. Delegates will receive a web voucher as part of their joining instructions upon confirmation of registration. By taking advantage of this "blended" learning approach, in-class time and learning are optimized.

PRE-REQUISITES

Fundamental understanding of energy futures and options.

Not sure if you have the appropriate experience? Click here to test yourself on futures and options knowledge necessary for this course.

WHO SHOULD ATTEND?

This two-day advanced workshop is perfect for those who are already familiar with futures and options but want a more in-depth understanding of hedging and the tools available. This course uses four unique case studies developed by the industry’s leading risk managers which require the delegate to apply hedging skills to complex scenarios. This programme deals with many different energy commodities, including oil and gas.

COURSE CONTENTS

  • Risk in energy markets
    • Qualification
    • Quantification
    • Sources and identification
  • Exposure, price risk and volatility
    • Examples of price risk exposure
  • Risk analysis tools
    • Volatility
    • VaR
  • The foundations of hedging
    • Goals and objectives
    • Introduction of new risks
    • Importance of liquidity
    • Cash flow risk
    • Basis risk
  • Hedging instruments and risks
    • Reasons for hedging
    • Types of hedgers
    • Anticipatory vs. true hedges
    • Hedging instruments
  • How to hedge with exchange traded futures contracts
    • Advantages and disadvantages
    • Cross hedging
  • Managing and measuring basis risk
    • Accounting considerations
    • Hedge effectiveness
  • How to hedge with exchange traded options on futures
    • Long versus short positions and hedges
    • Margins and cash flows
    • Advantages and disadvantages
    • Delta considerations
  • How to choose between futures and options
  • OTC instruments
    • Types, features, characteristics
  • Hedging with forwards
  • Hedging with swaps
    • Types
    • Pricing
    • Calculating CFDs
    • Advantages and disadvantages
  • ISDA and master agreements
  • OTC clearing
  • Basis swaps and other spread swaps
    • Types and execution
    • Residual risks
  • OTC options
    • Characteristics
    • Comparisons
    • Advantages and disadvantages
  • Exercise considerations
    • Styles
    • Strategies
  • Delta and other OTC options issues
  • Comparison of hedging strategies
  • Syndicate exercises to provide real-life context to the material

TESTIMONIALS

“The instructor’s business experience provided excellent insights into the course concepts. One of the best instructors I have had in the 25+ years of corporate training.” P.C., ConocoPhillips

UK: (+44) 1865 250521   |   USA: (+1) 713 343 1699   |   Singapore: (+65) 6809 1170

 

Email us at info@mennta.com

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Mennta Energy Solutions (formerly The Oxford Princeton Programme, Inc.) is not affiliated with Princeton University, Oxford University, or Oxford University Press.