Course description
Live Online Academy: Natural Gas
The Natural Gas Live Online Academy is the world's only live online series of courses that incorporate realistic physical natural gas 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 interactive1-hour Pre-Read with trading tutorials 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: 15,16, 17, 18 + 22, 23, 24, 25 July 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 Natural Gas and awarded 24 CPD points.
Training Course Content
Derivatives
- What the difference between forwards, futures, swaps and options are
- Explains some trading terminology
- How a futures exchange works
- How traders use gas derivatives
Ignite 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 risk is measured, what is VAR and how is it usedTrading lessons - common pitfalls
Ignite simulations – 2 trading simulations where delegates will be able to trade NBP, ZBR, PEG, TTF and NCG 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 NBP and TTF futures within a trading limit
Price Exposures
- What is physical Natural Gas trading
- Why trade physical Natural Gas
- Physical Natural Gas trading issues
- Factors that influence supply
- Factors that influence demand
- Natural Gas quality
- Contractual considerations
- Explains floating prices and benchmark prices
- Natural Gas price risks - oil v gas
- Managing Natural Gas price risks
Ignite simulations – 2 trading simulations where delegates will be able to trade JKM, TTF, Brent and Henry Hub futures
Arbitrage
- Explains physical arbitrage
- Contractual delivery terms
- Natural Gas cargo lifecycle
- Time charter
- Port and canal costs
- Operational costs of arbitrage
- Financial risks
- When traders arbitrage
- Netback calculation
- Managing arbitrage price risks
Ignite simulations – 2 trading simulations where delegates will be able to trade American, European and Middle Eastern cargoes, charter vessels and manage price risk exposures
Hedging
- Why hedge
- Basis risk
- Futures as hedging instruments
- JKM swaps as hedging instruments
- Hedging considerations
- Types of hedging
- A detailed example of hedging a fixed price cargoes
- A detailed example of hedging a floating price cargoes
- Futures or swaps?
- Dirty or imperfect hedging
Ignite simulations – Up to 3 trading simulations where delegates will be able to apply arbitrage and unwinding hedges and charter vessels as cargoes price in/out
Day 3:
Storage
- What is storage
- Storage considerations
- 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
Ignite simulations – 2 trading simulations where delegates will be able to store American Natural Gas cargoes and apply hedges to capture the storage play
Team Dynamics
- How to extract value from a physical Natural Gas 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 Natural Gas 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
Very fun and interactive course! The instructors did an amazing job at making complex concepts simple and putting theory into practice through the trading simulation.