Course description
Live Online Academy: Crude Oil
The Crude Oil Live Online Academy is the world's only live online series of courses that incorporate realistic physical trading simulations; giving you the opportunity to become fully immersed and interact in the world of a trader, experiencing the psychological highs and lows of commodity trading.
There is a Welcome course, followed by 8 experiential courses, each featuring three elements:
- An interactive 1-hour Pre-Read that introduces the trading concept
- A Live Session streamed for 2 hours per day
- A Knowledge Check
The Academy runs Monday to Thursday over a pre-defined two-week period.
Course Dates: 14, 15, 16, 17, 21, 22, 23, 24 October 2024
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Upcoming start dates
Suitability - Who should attend?
Suitable for individuals working in organisations such as:
Trading companies, Banks, Brokers, Oil producers, Consumers, Refiners, Distribution companies, Government and Associated organisations.
Including roles in:
Back office, Accounts, Financial operations, Middle office, Trade control, Analysts and Front office, Juniors, Managers and Operations.
Outcome / Qualification etc.
By completing this learning path, you will attain the certificate TwoTwoFive Certificate Crude Oil and awarded 24 CPD points.
Training Course Content
Derivatives
- What is trading and why do companies trade
- Explains some trading terminology
- What is a crude oil derivative
- What the difference between forwards, futures, swaps, and options are
- How they are connected, EFP, EFS
- How a futures exchange works
- How traders use crude oil derivatives
Ignite simulations – Up to 3 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 risk is measured, what is VAR and how is it used
- Trading lessons - common pitfalls
Ignite simulations – 2 trading simulations where delegates will be able to 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 structure and what they signify
How traders use time spreads
Ignite simulations – 2 trading simulations where delegates will be able to trade Brent and WTI futures within a VAR trading limit
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
- Explain floating prices and benchmark prices
- What is crude oil differential trading
Ignite simulations – 2 trading simulations where delegates will be able to trade North Sea and West African physical crude oil cargoes
Crude Oil Live Academy - 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
Ignite 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 a fixed price/floating price cargoes
- Operational impact on pricing
Ignite 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
Ignite 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 important
- Applying all the trading concepts learnt across a portfolio
- Understanding the value of tenders
Ignite simulations – Working as a team, the delegates will apply 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.
Course delivery details
This Live Online Academy is delivered live online, on set dates and times.
Why choose TwoTwoFive
Practice trading with IGNITE trading simulator
1,000s of individuals from 100s of companies trained over the last 10 years
Our trainers have a combined 100+ years of trading experience
Reviews
Average rating 5
It was a very interesting and knowledgeable course. I loved it!
Very well-structured course.
This is one of the best courses I have ever taken, and it perfectly that marries theory and practice. It is perfect for both practitioners and those new to the industry.