ICE Education & TwoTwoFive LNG and Natural Gas Trader Programs have been created specifically for individuals who are 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 LNG and Natural Gas 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 LNG and Natural Gas 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? The major gas hubs. What is a gas derivative? What is the difference between forwards, futures, swaps, and options? Explains some trading terminology. How a futures exchange works. How traders use gas derivatives.
Simulations: 2 trading simulations where delegates will be able to 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 will be able to trade NBP, ZTP, PEG, TTF and THE futures within a VaR trading limit.
Day 2:
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 NBP and TTF futures within a trading limit.
Pricing Exposures: What is physical LNG trading? Why trade physical LNG? Physical LNG trading issues. Factors that influence supply. Factors that influence demand. Natural Gas/LNG quality. Contractual considerations. Explains floating prices and benchmark prices. LNG price risks – oil v gas. Managing LNG price risks.
Simulations: 2 trading simulations where delegates will be able to trade JKM, TTF, Brent and Henry Hub futures.
Day 3:
Nat Gas Arbitrage: Explains physical arbitrage utilising gas pipelines. Trading geographical spreads. Costs to move gas. Valuing pipeline capacity. Optimisation of pipelines.
Simulations: 2 trading simulations where delegates will be able to trade around pipeline capacity between THE and TTF markets.
Nat Gas Storage: What is storage? Why companies might want storage. The costs associated with storing natural gas. Valuing storage. Optimisation of storage. Types of market structure. How to hedge a storage play. Intrinsic and Extrinsic Value.
Simulations: 2 trading simulations where delegates will be able to utilise withdrawal and injection rights to store TTF and NBP gas and apply hedges to capture a storage play.
Day 4:
LNG Arbitrage: Explains physical LNG arbitrage. Contractual delivery terms. LNG cargo lifecycle. Time charter. Port and canal costs. Operational costs of arbitrage. Financial risks. When traders arbitrage. Netback calculation. Managing arbitrage price risks.
Simulations: 2 trading simulations where delegates will be able to trade American, European and Middle Eastern LNG cargoes, charter vessels and manage price risk exposures.
LNG Hedging: Why hedge? Basis risk. Futures as hedging instruments. JKM swaps as hedging instruments. Hedging considerations. Types of hedging. A detailed example of hedging fixed price cargoes. A detailed example of hedging floating price cargoes. Futures or swaps? Dirty or imperfect hedging.
Simulations: Up to 3 trading simulations where delegates will be able to apply arbitrage and unwinding hedges and charter vessels as LNG cargoes price in/out.