Commodity options trading risk management courses

The course assumes a general familiarity with derivative instruments and, whilst not based upon detailed theoretical or mathematical approach, it does require basic mathematical fluency. Our average overall score awarded to us by our clients is nine out of ten. Our learning specialists ensure you get the maximum return on your training investment. Subject to your choices on the form, we may also use your data for marketing purposes. We produce learning solutions that are completely unique to your business. PLUS: Delegates will receive free copies of option pricing and risk management software for their own use after the programme. Do you have five or more people interested in attending this course? If you would like to find out more about this, please visit www.

For ease, we do advise that you contact the specialist VAT reclaim organisation, VAT IT. The agenda also provides a practical focus on the varied applications of options in corporate exposure management, portfolio hedging and tactical asset allocation, trading and investment applications, and in the engineering of structured products. British Accreditation Council and the CPD Certification Service. Most delegates who attend our courses in the UK are able to claim back their VAT once it has been paid. We are proud of our record of customer satisfaction. There are two ways in which you can claim back VAT. Why does Euromoney Learning Solutions charge VAT? Euromoney Learning Solutions is part of the Euromoney Institutional Investor PLC group of companies. As an international group, we may transfer your data on a global basis. We believe that technical knowledge and skills are best achieved through active participation, via individual or group case studies and simulations.

The below information details why we need to charge VAT and how you can claim it back. Further information is set out in our privacy policy on this site. As part of the trial, you may also receive email updates and other features as specified for that product. Delegates will spend a significant fraction of the course duration carrying out a number of computer based case studies and exercises, replicating the day to day realities of financial markets and market behavior. HM Revenue and Customs by completing the following form and sending to the address highlighted on each form. If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help. This course forms part 1 of the Options Training Week.

Since, the event is held in the UK, the place of supply is the UK and therefore UK VAT has to be charged. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements. VAT IT specialise in refunding VAT for their customers and can help to process your VAT reclaim, taking out the hassle of the process, for a commissionable rate. It also introduces the concepts of derivatives instruments used in commodity trading. This final session describes some of the major commodity hedging disasters and why they went wrong. The Course Instructor holds a BSc Hons, a gold medal and Foundation Scholarship in Mathematics from Trinity College, Dublin. Why invest in commodities?

Effective commodity price risk management is becoming a critical differentiator of business performance for any company producing, trading, consuming or using commodities as part of their manufacturing or distribution process. Delegates are advised that the LME operates a smart casual dress code. Price volatility and increasingly complex commodity markets are the main influencing factors and companies that proactively and efficiently manage their commodity price risk will profit a competitive advantage over their peers especially when it comes to profit margin. She later joined Macquarie Bank as a specialist commodity director, where she provided a complete banking service to clients in the base and precious metals, and oil and gas sectors. She moved into the commodity arena when she joined Credit Suisse to market complex hedge structures in precious metals and associated financings. The visit gives participants the practical context to complement and reinforce lecture sessions. The Course Instructor commenced her banking career in the Goldman Sachs graduate program. Where should the financier sit?

She is currently a director of a consulting business specialising in commodity price risk advisory and related expert witness work. To reinforce the learning in the practical context, participants will have the opportunity to witness open outcry trading during a site visit to the LME during the course. Participants observe the setting of official settlement prices, which are relied upon by industry throughout the world. At Westpac Banking Corporation she was responsible for the design and implementation of derivative pricing models for the interest rate and FX trading desks. This practical training course has been designed to provide delegates with a comprehensive overview of the commodities markets, hedging strategies and risk management techniques to effectively manage commodity exposure. The course also explores the investment vehicles available for accessing commodity exposure and the financing options in the commodities sector, including: royalties and streaming; project finance; corporate facilities; trade and export finance.

The second part of the programme focuses on how to manage commodity price exposure through hedging techniques using exchange traded and OTC derivatives. The session emphasises how the practical techniques learnt during the course can be applied to avoid similar issues. Bankers, trade financiers and investors alike can also benefit from the vast risk appetite opportunities in commodities. The first part of the programme is an introduction to the main commodity asset classes, their market structures and the main players in the commodity markets. Building blocks: long vs. Prior to FEA, Carlos worked for a hedge fund in the Midwest and an asset management firm in Madrid, Spain. He has been a faculty member of the Oxford Princeton Programme since 2004, where he teaches the Derivatives Pricing Hedging and Risk Management Certificate Programme as well as courses on Counterparty Risk Management and Gas and Power Trading and Risk Management. CDPH 2 builds on the concepts and instruments presented in the first course and focuses on the management and measurement of risks in commodity physical and derivatives portfolios, with particular emphasis on VaR and Stress tests and advanced hedging topics.

Volatility structure in commodity markets; spot vs. Case study: Pricing an option using Black 76 in Excel. He is the founder and managing director of a risk management advisory firm with clients in North America, Europe, Africa and Asia. This highly interactive workshop uses practical case studies, Excel exercises, and group discussions to reinforce the concepts presented in the lectures. Probability distributions; moments of a distribution. Case study: Pricing an American option. Calculating volatility and correlation. There, he worked over six years as an essential contributor in the development of the energy derivatives valuation and risk management models of the firm. Seasonality and location based considerations. Do you have a question or enquiry regarding this course?

He has published over 100 articles on financial, energy, and commodity trading, hedging and risk management. IAS 39 and FAS 133 and hedge effectiveness. Case study: Generating random paths in Excel. DR CARLOS BLANCO is an expert in energy, commodity, and financial risk management and modeling. Carlos is a former VP, Risk Solutions at Financial Engineering Associates. Types of Understanding correlation.

Monte Carlo simulation based models. Binomial and trinomial trees. If you have attended a past course please provide us with some feedback. Candidates are welcome to purchase the above courses on www. Applicants can choose five titles that supplement and expand along their desired training path. Please note the Comprehensive Payment Plan provides saving of over 400USD or 350GBP!

The mandatory courses cannot be repeated as an elective. The learning objectives of the ten mandatory courses and five electives will combine to develop a comprehension of the fundamental principles in energy trading and risk management in order to successfully write the final exam. Target Audience: Those who are interested in understanding commodity markets. As with a real put, the sole cost of a synthetic put is the cost of the long call. The strike prices differ. These approaches partially hedge as they assume the bullish and bearish sides of the market. Should prices rise, the investor loses only the premium, but retains unlimited profit on the long futures position. The short position gains with falling prices and reduces profit on the underlying if values increase.

This method provides protection for a long position with limited profitability. The method is covered as the investor is long futures should the call be exercised. Their value increases as that of the actuals decreases. The premium is the only cost of this method. Change in futures price. The investor purchases puts with a strike price at or close to the price he paid for the futures. Long puts protect against falling prices. The greater the extent to which the option is in the money, the greater its delta and vice versa.

Should futures prices decline, then the investor has only spent money on the call premium. If one side rises, the other falls. Like a long call, the only cost of this synthetic transaction is the premium for the long put. The long put protects the risk of a price decrease. These are protective strategies that use more than one option to manage risk and return. Like a long call, prices can increase without restriction. He or she has to buy, and possibly in a rising market. Long futures benefit from rising prices.

The method helps to secure a futures price and generate premium income greater than the premium paid. There are both long and short strategies of this type, where the investor buys both a call and put or sells both a call and put. As upside risk on a short futures position is unlimited, exercising the call if prices exceed the strike price limits the upside on the short position. This method is of limited use in protecting a short futures position from an increase. High delta options are close to one. Delta is a metric for hedgers to determine how volatile the underlying is that they are attempting to hedge and the degree to which a hedge might be effective. Both price and expiry dates differ. The underlying may well increase in value. The investor makes money in a declining market.

If the call is exercised against her, she has the futures to deliver against the call holder. The intrinsic and time value profit in a rising market, offsetting the higher cash market prices. If they decline below the strike price, then the owner has paid for insurance that was not used. Should prices decline below the strike price, he may exercise and sell. The value of the contract gains with the increase in value of the actuals. The options have the same strike price and expiration month. An investor purchases a put and sells a put. If prices rise and the call is not assigned, the investor makes money.

The former is profitable when prices of the underlying rise or fall by amounts that exceed the two premia paid; the latter when the underlying prices move by less than the combined premia received. Short calls furnish premium income. The futures are offset at the strike price. The lectures will be delivered in English. The values of derivatives such as options are driven by the behavior of its underlying asset. Options and other derivatives are a very important class of financial instruments.

Brent crude oil or the price of natural gas. Scholes model to Monte Carlo simulation. Furthermore, we will also cover how derivatives can be used as risk management tools. For instance, how can an oil company hedge the risk it faces from the fluctuations of the price of crude oil? The course is practical in the sense that the pricing methods for options and derivatives covered in the course can be used in jobs in both the financial and commodities business. One important learning objective of the course is to give insights into how the volatility of crude oil prices will affect the value of the option. An option to buy a shipment of crude oil in the future is very much affected by the volatility of the price of oil. The course aims to provide the theoretical foundation for pricing derivatives and how it differs from standard financial valuation models.

Price financial options and other derivatives such as forward and futures contracts. Ags, Livestock, Metals, Softs, Currencies, Interest Rates, Energy, and Indexes. We base our decisions on multiple sources of information, that we uniquely gather from our network of clients and insiders to provide hedging and risk management strategies that align with your trading and investing goals. Click here to learn more about Jay or view his Curriculum Vitae. Basic section covers the principles of futures trading and hedging. The course is split into two parts; Basic and Advanced. Worked with Continental Grain, The Pillsbury Company, The Ferruzzi Group, Bartlett Grain Co. The focus of both course sections is to teach participants not just how to trade commodity futures and options; buy why and when to do so. Requests made fourteen days or less before a course start date will be not be refunded. Principles of futures and option trading, OTC trading, the Greeks, futures put and call strategies for hedging, spreads and butterflies.

Registrations can be transferred to other individuals upon approval. The course focuses on the principles of risk management and commodity price control through the principles of hedging and utilization of various hedging strategies. The last day of the intermediate course will include a futures trading simulation. Advanced section deals with risk management through the use of options and OTC markets. The IGP Institute reserves the right to cancel or reschedule courses if minimum enrollment numbers are not met. Participants also have the option to roll registration to another course if used within one calendar year from the start of the course.

Upon request, refunds for withdrawal made prior to fifteen days before a course start date will be fully refunded, minus a 100 processing fee. She has more than a decade of academic experience and has presented and published many papers in national and international journals and conferences. Professor, Vinod Gupta School of Management, Indian Institute of Technology Kharagpur, West Bengal. She was also a Fulbright scholar at Purdue University, USA. Commodity derivatives market has witnessed tremendous growth in India. She has also been a guide to many PhD scholars and has authored a book on Stock Exchanges, Investments and Derivatives. Indian Capital and Derivative Markets, FDI entry method and Mergers and Acquisitions by Indian Companies.

Final List of exam cities will be available in exam registration form. DGCX and The Baltic Exchange etc.