Course Summary

After learning all there is to know about exchange-traded futures and options, traders are always faced with a complex dilemma - Basis. The 'B' word can make or break a successful hedging or trading program. This one-day programme includes timely 'real world' examples to reinforce the application of basis trading concepts and tools. After completing this course, delegates will have a strong working knowledge of basis trading. This knowledge will be put to the test during an exciting trading simulation.

8 CPE credits awarded for this course.

Delivery Method: Group-Live

Who Should Attend?

Class delegates include everyone from trade support staff all the way up to senior management — anyone who needs to learn how to analyze and take advantage of proper basis risk/opportunity analysis. The programme deals with many different energy commodities.

Prerequisites

A thorough understanding of basic hedging principles with exchange traded instruments, forwards and swaps. This can be found in Fundamentals of Energy Futures and Energy Risk Management.

Includes Web-based Pre-study Module

This course is accompanied by a preparatory course available online. Delegates will receive a web voucher as part of their joining instructions upon confirmation of registration. By taking advantage of this 'blended' learning approach, in-class time and learning are optimized.

Course Contents

• Basis fundamental analysis including:
  • Weather
  • Regional supply/demand analysis
  • Current market perception
  • Transportation
  • Displacement analysis
  • Common errors of fundamental analysis
• Basis statistical analysis, including:
  • Measurement of historical relationships
  • Seasonal analysis
• Common basis-related instruments:
  • Basis swaps
  • Fixed-price swaps
  • NYMEX look-alikes