Course description
Live Online Course: Crude Oil - Hedging
This Live Online course will explain why traders may consider hedging a cargo of crude oil in different circumstances, how arbitrage hedges are unwound, and why understanding pricing exposure is so important.
- The interactive E-Learning module should take an hour to complete and forms a pre-read along with some trading simulation tutorials before attending a live session in our virtual classroom.
- The live session lasts 2 hours where a former trader talks through the trading concept and how it is applied in the real world (not theoretically). During the session, you will play a complex trading simulation to help you understand and apply the trading concept.
The course also includes 7-day access to our trading simulator, Ignite 1 week prior to your chosen live session. You will be able to play a 10-minute trader training tutorial an unlimited amount of times. The tutorial will reinforce your understanding and allow you to see how it's applied.
There is a knowledge check to ensure you've understood the learning content. The pass mark is 60%. You will receive a course certificate for 3 CPD points on completion.
You will have access to the E-Learning content for 30 days after enrolment.
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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.
NB: We recommend completing the Derivatives, Times Spreads and Price Exposure E-Learning courses, before attempting this course.
Outcome / Qualification etc.
By completing/passing this course, you will attain the certificate TwoTwoFive Certificate Crude Oil and awarded 3 CPD points.
Training Course Content
Crude Oil - Hedging
- Why hedge
- Basis risk
- Swaps as hedging instruments
- Types of hedging
- A detailed example of hedging a fixed price cargoes
- A detailed example of hedging a floating price cargoes
- Operational impact on pricing
Access to Ignite trading simulator - a 10-minute trading tutorial where you will be able to apply arbitrage hedges to a Bakken crude oil cargo and price risk manage the cargo as the purchase and sale price in/out.
During the live session, the former trader will talk about real-world hedging scenarios and considerations when making these trades.
Using the Ignite trading simulator- you will play a daily unwinding 30/45 minutes trading simulation where you will be able to identify and apply hedges as various crude oil cargoes price in and out. Time permitting, you will then play a 30/45 minutes complex trading simulation where you will be identifying, applying arbitrage hedges, charter vessels and unwinding hedges to 5 physical arbitrage cargoes. Throughout the simulations, the TwoTwoFive team will be there to help you if required.
Experience how traders trade the physical oil markets, see your price exposures, and live profit/loss.
Course delivery details
This Live Online Course is delivered live online, on set dates and times stated.
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
Good pre-reading materials. Good presentations. Simulating is well-designed and interesting.