ICE Education & TwoTwoFive Crude Oil Trader Programs have been created specifically for individuals considering a career move into physical commodity trading or those working in supporting roles who want to become more familiar with trading decision-making.
Learning with a difference
The expert TwoTwoFive and Ice Education training team of former traders teach step-by-step 8 primary crude oil trading concepts in detail, revealing the key methodologies and intricacies of each by using interactive presentations, videos, tutorials and quizzes to test individual’s knowledge as they learn.
Theory in practice
Everyone can test the theory by putting their learning into practice. Our unique trading simulator, Ignite, is an advanced piece of software that provides a true view of the wealth of information a trader has to process, coupled with the functionality to play real-life trading scenarios. Ignite provides a learning experience like no other, as individuals will physically experience what it feels like to be sat in a trader’s chair…with the clock ticking…and adrenalin rushing. See our reviews HERE
The Crude Oil Trader program is available to book now – delivered over 4-days each trading course concept module features:
- A 1-hour digital pre-read to be taken before the live session
- 8 x 2-hour online sessions streamed and hosted live twice each day
- A knowledge check.
Click on the dates below to book and view the full course details and live session times. EMEA & Asia times available.
Course Content:
Derivatives: What is trading, and why do companies trade? Explains some trading terminology. What is a crude oil derivative? What is the difference between forwards, futures and swaps? How they are connected, EFP, EFS. How a futures exchange works. How traders use crude oil. Simulations: Up to 3 trading simulations where delegates can trade futures, swaps, and forwards.
Trading Best Practice: What is risk? The different types of risk – price, credit, operational, reputational. How risk can be managed successfully by a trader. Technical analysis. How is risk measured, what is VaR, and how is it used? Trading lessons – common pitfalls. Simulations: 2 trading simulations where delegates can trade Brent futures within a VaR trading limit.
Time Spreads: What is spread trading/different types of spread? Principles of spread trading. What a forward curve is and market structure. Different types of market structures and what they signify. How traders use time spreads. Simulations: 2 trading simulations where delegates will be able to trade Brent and WTI futures within a VaR trading limit
Cargo Price Exposures: What is physical cargo trading? Physical delivery terms. Factors that influence supply/demand. Crude oil quality. Contractual considerations. Price reporting agencies – who are they and what they do. Explains floating prices and benchmark prices. What is crude oil differential trading? Simulations: 2 trading simulations where delegates will be able to trade North Sea and West African physical crude oil cargoes
Arbitrage: Explains physical arbitrage. Different aspects of crude oil. Voyage chartering/Time charter. Bareboat charter. Contract of affreightment. Worldscale – what it is and how it works. Operational costs of arbitrage. Financial risks. When traders arbitrage. Netback calculation. Simulations: 2 trading simulations where delegates will be able to trade American, North Sea and Middle Eastern physical crude oil cargoes, charter vessels, and manage price risk exposures
Hedging: Why hedge? Basis risk. Swaps as hedging instruments. Types of hedging. A detailed example of hedging fixed price/floating price cargoes. Operational impact on pricing. Simulations: Up to 3 trading simulations where delegates will be able to apply arbitrage and unwinding hedges and charter vessels as physical cargoes price in/out
Storage: What is storage/why store oil? The costs/benefits associated with storing oil. When traders store oil. Types of market structure. How to hedge a storage play. Intrinsic and Extrinsic Value. Simulations: 2 trading simulations where delegates will be able to store American and European crude oil cargoes and apply hedges to capture the storage play
Team Dynamics: How to extract value from a physical crude oil portfolio. Why speedy evaluation of opportunities is critical. Why teamwork is essential. Applying all the trading concepts learnt across a portfolio. Understanding the value of tenders. Simulations: Working as a team, the delegates will use all the trading concepts across a portfolio of crude oil cargoes, trading spot cargoes, entering tenders, hedging, arbitrage, seeking storage opportunities, and speculatively trading the futures markets with flat price and spreads positions.