Posts Tagged ‘Risk’

Futures and options trading India has risk factor involved

Article by Sushil Finance

A number of people wish to have a grand lifestyle which will give them a strong position in the society. They also want to have all the comforts and luxuries which will make their life simpler, struggle free and allow them to live an opulent lifestyle. Investing in different shares and derivatives is a good option for people to invest their hard earned money in and increase their profits. This profit which one derives from shares and derivatives is highly useful to purchase goods and commodities that enhance your lifestyle. Also it becomes an additional source of income to an individual.

F&O derivatives that is inclusive of Futures and options trading is the most common of all. Futures is an agreement of sorts between two individuals or parties to sell and purchase an asset of a standard quantity and quality on a particular date sometime in the future at a rate which the two parties fix and have a consensus with, in today

Futures and options trading India is a high risk high return investment

Article by Sushil Finance

Undertake Futures and Options trading India only if you plan to invest an amount that will not affect your life substantially should you have to bear a loss for it’s a very risky trading instrument. The potential of making a profit or a loss while Futures and Options trading India is virtually unlimited. Should you be at the losing end of a futures contract, you may have to lose more money than you may have kept in the margin the entire responsibility of the contract amount is on you as this investment is one of those that has a very high leverage.

Read on to know some of the basics differences of futures and options and the basics of trading;

The potential of an options contract making a substantial loss is only held true if, without holding any opposite position, you sell the option. For example, if you sell an option worth Rs.900 for Rs.800 you shall have to bear the loss of the remaining 100 rupees that are remaining balance against your position in the options contract. Difference amount minus the premium amount is the loss that one faces while trading in options and the vice-versa stands true when one makes a profit. Since the nature of the trade is highly volatile inherently, it is advisable that you keep the opposite position open for yourself. This is possible in both options as well as futures trading.

When you are trading in options, the amount of risk is pretty limited as you only have to pay the difference amount whereas a futures trader is liable to pay more than the margin amount that was paid initially for making the trade transaction. Thus the risk and liability involved in a futures contract is said to be unlimited.

Futures and Options trading India is a high-risk high return option and should be handled with caution and carefully research has to be carried out before investing in either of these investment instruments. Hire a good financial planner or advisor to help you minimize losses and maximize your profits in the long term as this will ensure the growth of your money.

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PerTrac Teams with FinAnalytica to Offer RiskPlus: New Product Delivers Returns-Based Risk Reports for Hedge Fund Portfolios

PerTrac Teams with FinAnalytica to Offer RiskPlus: New Product Delivers Returns-Based Risk Reports for Hedge Fund Portfolios

New York, NY (PRWEB) April 14, 2010

PerTrac Financial Solutions (http://www.pertrac.com), the leading provider of analytic and workflow solutions, announced the release today of PerTrac RiskPlus, a new returns-based risk analysis solution. The new product is a collaboration with FinAnalytica the leading provider of real world portfolio risk solutions for multi-manager funds, hedge funds and asset management firms.

“PerTrac RiskPlus is a breakthrough for hedge fund investors seeking more sophisticated risk monitoring for their portfolios,” said Gerry Mintz, PerTrac President and Chief Executive Officer. “Using state-of-the-art statistics based on fat-tailed distributions, dynamic correlations and multi-factor models, PerTrac RiskPlus sheds light on opaque portfolios at a price far less than more traditional or position-based risk systems. It offers large and small investors tools previously available only with the purchase of a software platform costing almost ten times as much.”

PerTrac RiskPlus examines portfolio risk based on the monthly returns of each fund in the portfolio rather than each fund’s holdings, information which is either unavailable or impractical to acquire from hedge fund managers on a timely basis, and is expensive to analyze. RiskPlus is a powerful solution for essentially any hedge fund strategy, providing investors an insightful view of the risks to which they may be exposed.

“Our work with PerTrac will bring advanced risk analysis to a wider market,” said Dave Merrill, CEO of FinAnalytica. “RiskPlus puts our sophisticated, academically proven fat-tailed risk modeling into a scalable, easy-to-use tool that provides practical and actionable risk assessment.”

“We’re excited to work with FinAnalytica on this product,” noted Mintz. “The reports generated by PerTrac RiskPlus arm investors with information helpful in their due diligence and ongoing monitoring. They provide critical information that supports investment decisions including which managers may deserve greater allocations, which ones are problematic, and the questions you should ask managers, as well as how your portfolio can be expected to perform in market downturns.”

Highlights of PerTrac RiskPlus include:

    Fat-tailed risk statistics (as opposed to traditional risk statistics which assume a normal distribution) that show which funds contribute most to portfolio risk and which are the best risk diversifiers. Unlike traditional risk statistics that focus on general volatility, advanced statistics such as fat-tailed VaR, fat-tailed ETL, STARR, and Rachev Ratio separate downside risk from upside potential.
    Risk budgeting that compares the “implied” returns that funds should be earning based on their tail risk profile versus their actual returns. See which funds are underperformers relative to their risk level and which funds may deserve increased allocations.
    Factor contribution analysis which reveals how much various market factors (e.g. Asian convertibles, British pound sterling, U.S. large & mid caps, etc.) account for portfolio risk and how much risk is specific to the underlying funds.
    A Copula function that considers dynamically changing correlations among funds, e.g. weaker correlations in up months and strong correlations in down months, known as tail-dependence.
    Stress tests that show how a portfolio and its underlying managers could be expected to perform in 11 different historical market stress scenarios, including Black Monday, the Asian Crisis, the World Trade Center Attack, and the Crash of 2008.
    Sensitivity stress test exposures to seven different risk categories including equities, bonds, ABS/MBS, commodities and FX.
    Each fund’s beta and p-value relative to 23 different market factors, providing insight into the true underlying portfolio exposures.
    Comparison of classical monthly correlation values between funds versus robust correlation values that de-emphasize outliers to help understand their impact on the relationship between the funds.
    Generates risk reports from return streams and portfolio weightings already stored in PerTrac Analytical Platform.
    Pricing based on usage, so smaller investors who require less frequent reports find the product highly affordable, while larger investors with more managers or bigger reporting demands can scale up as required.

PerTrac RiskPlus is an optional module integrated into the latest version of the PerTrac Analytical Platform application, the world’s leading investment analysis and asset allocation software. PerTrac RiskPlus is aimed at funds of funds, pension funds, sovereign wealth funds, endowments, foundations, family offices, and other hedge fund investors searching for a cost-effective solution for sophisticated portfolio risk monitoring and management. To learn more about PerTrac RiskPlus or the PerTrac Analytical Platform, please visit http://www.pertrac.com or contact the company at sales@pertrac.com.

About PerTrac

PerTrac Financial Solutions was founded in 1996 with the goal of creating a suite of analytic and workflow solutions to help investment professionals make better decisions, improve productivity, reduce risk, and improve communication. Now an industry standard, PerTrac software is used by nearly 2,000 clients in 50 countries, including banks, brokerage firms, consultants, plan sponsors, family offices, investment managers and funds of funds. The company’s flagship product, the PerTrac Analytical Platform, is now the world’s leading asset allocation and investment analysis software, used by approximately 1,700 firms worldwide. PerTrac CMS, which was part of its January 2006 acquisition of Whittaker Garnier, is another major component of the PerTrac Suite. PerTrac CMS is the investment industry’s leading tool for managing the client relationships and workflows associated with capital raising, investor relations, and investment management, and is used by nearly 300 alternative investment firms around the world. In January 2008, PerTrac announced the release of PerTrac Portfolio Manager, a unique software application designed to help funds of funds and institutional investors create, monitor and manage multi-manager portfolios of alternative investments. PerTrac P-Card, released in November 2008, is a revolutionary new investment data distribution and collection platform, which gives managers and investors the tools they need to share sensitive information directly, electronically and securely. PerTrac Financial Solutions is headquartered in New York with offices in London, Hong Kong, Tokyo, Reno, and Memphis. For additional information on the full suite of PerTrac products, please visit http://www.pertrac.com    

About FinAnalytica

FinAnalytica is a leading provider of real world portfolio and risk management solutions for quantitative analysts and portfolio managers. FinAnalytica’s Cognity software suite incorporates the latest and most transparent advances in analytics, including comprehensive treatment of real world fat-tailed and skewed asset returns. With offices in New York, London and Sofia, FinAnalytica supports leading fund of funds, hedge funds, endowments, pension funds and asset management firms globally. For further information, please visit http://www.finanalytica.com.

PerTrac Press Contacts:

Meredith Jones

Managing Director, PerTrac

+1-615-297-4500

mjones(at)pertrac(dot)com

Meg Bode

Bode & Associates, Inc.

+1-516-869-6610

meg(at)bodeassociates(dot)com

FinAnalytica Press Contacts:

Adam Honeysett-Watts

Cognito Europe

+44 (0)20 7438 1100

Ishviene Arora

Cognito US

+1-646-395-6300

FinAnalytica(at)cognitomedia(dot)com

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Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

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Learn The Basics of Stock Trading Online without The Risk and Make Money with Stocks and Options

The best way to learn stock trading online is by practicing trading on online trading simulators. There are also mock trading games available online where novice traders can test their skills or learn new skills. There is also a method called ‘paper trading’ that works well. Practice may not make perfect in a volatile stock market but practice has proved to be prudent before beginning to trade with money on online trading platforms. Once you have the basics down you should compare online discount brokers and open an account.

There are two types of simulators available for practice on the internet. One simulator offers a fictional portfolio based on real stock entries, stock market scenarios and stock market crashes. This is for the serious potential trader to learn strategy. There are also stock market games online that are fantasy based. These do not always present realistic stock market situations. Both simulators are useful for online stock trading wannabes to learn the ropes.

Virtual stock exchanges, market simulators and online trading games are the different ways by which an online trading aspirant can learn the finer points of trading online. Virtual competitions help the trader compete with other aspirant traders and achieve a fictional goal.

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The important part of practicing trading through these simulators is to take the game seriously. The trader wins nothing, loses nothing but learns almost everything about online stock trading. The trader should keep a budget and a goal while learning to trade online. Trading on a simulator will help to trade within a budget and stopping when the goal is reached.

Potential traders can learn the different types of trade and trading with different types of stock. They can learn to trade with penny stocks, day trading, scalping, options trading and futures trading without using real money.

Experts believe that a trader can start trading with money after ten successful trades. The best time to enter the real money stock trade is after the trader is comfortable with trading and feels that practice should be converted into profits. Traders must try to learn as much as they can about loss mitigation, exiting and profitable trading while practicing with simulators. Traders must trade with different portfolios and learn from their practice mistakes. They should learn risk management while trading. Some simulators help potential traders by giving expert evaluation of their progress.

Practice is a time for learning. Potential traders must deal with the whole process as if they are working with real money. Treating the process like a game with a, ‘nothing to lose’, attitude will not help the aspiring trader to learn the process in depth. Learning to control losses, using strategies or a combined set of strategies to make profits and learning to stay within a budget will help when money is invested in the process. Practicing in interactive simulators with other potential traders will help to learn new strategies from others.

Practicing trading on virtually simulated stock markets will help traders to avoid heavy losses when real money investments are made. To profit from the practice, the practice sessions should be treated as if real stocks are being traded and real profits are being made.

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Option Trading – Very Low Risk & Great Returns (2 of 3)

www.sjoptions.com presents Low Risk Option Trading classes. Watch this video of a real trade to see our low risk strategies in action. More about San Jose Options Mentoring Are your current option strategies keeping you up at night? Learn The Stress Free Option Strategies That Have Changed My Life! Our Mentoring Program includes Daily Trading Rooms, Our Student Forum, Pre-recorded Instructional Videos, Training on Brokerage Platforms, Our 15 Step Learning Plan, Instant Notifications of Our Trades & Adjustments, Lifetime Support, and Much More! Visit us at http for more information
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Q&A: What happens and is the risk in trading (buying and selling) CALL OPTIONS?

Question by bdywrks93: What happens and is the risk in trading (buying and selling) CALL OPTIONS?
I’ve been reading around and I’ts quite confusing. Some people say that once you become a seller of an option (call option) you become a writer and the risk as the writer is the buyer can exercise the option (can be unlimited). I’m asking because if I bought a call option which is out of the money, goes substantially above the strike price and then sell it for a hefty profit, but there’s time left on the contract, what if someone exercises the contract i sold, am I obligated to provide the shares? Ex. It’s Oct and price is 48, bought Nov 50 Call, few weeks before expiration, I sell the Call option since price is at 56, but close to expiration the stock’s price goes even higher, 60+. What if I dont have the money to buy the shares if it gets exercised? Can this happen or no?

Best answer:

Answer by strath
Can this happen or no? No. Once you have sold the call option you have no position left. You are not obligated to deliver the shares. Party who bought option from you now assumes that obligation.

Yes, it’s confusing. Perhaps you might like to visit cboe.com (the Chicago Board Options Exchange – it’s not a brokerage house) and try their virtual trading tool. You’ll see what happens without risking any money.

The cboe website has many tutorials and workshops. Yahoo finance also has many tutorials and workshops on options. Click investing, click options, and carry on reading!

What do you think? Answer below!

OptionsANIMAL Provides Education to Help Investors Minimize Risk in Today’s Market Through Proven Investment Strategies

OptionsANIMAL Provides Education to Help Investors Minimize Risk in Today’s Market Through Proven Investment Strategies

OptionsAnimal Investment Education

Lehi, UT (Vocus) November 10, 2010

OptionsANIMAL, the leading provider of options and stock trading education, has teamed up with Jon ‘DRJ’ Najarian, owner of optionMONSTER.com and contributor on CNBC, to educate investors on how to minimize the risks of investing in today’s market by using options to hedge risk. Mr. Najarian believes that this one day options trading course will give all investors the understanding of how to make their money work for them. He also said that he “guarantees this investing workshop will change lives.”

There are risks to all investments, but by using different combinations of bullish and bearish options trading strategies this risk can be managed. In this one day event you will learn steps to securing your investments. All OptionsANIMAL workshops are provided free of charge nationwide. The next event is scheduled for November 13, 2010 in San Jose, CA. To register for this event visit http://conference.optionsanimal.com

When: November 13, 2010 9:00-5:00

Where: San Jose Marriott

             301 S Market Street, San Jose, CA, 95113

About the Speakers

Greg Jensen is Founder and Chief Trainer of OptionsANIMAL, is an options investor, speaker, and author. His book, “Spread Trading – An Introduction to Trading Options in Nine Simple Steps,” like his cutting edge and innovative education, focuses on giving investors the tools and knowledge to put the odds of success in their favor. Greg has trained thousands of people from all corners of the world to be successful in any market condition.He is a Registered Investment Advisor and is actively managing private investment accounts, and earned his degree in Business Management, with emphasis in Finance, from Utah State University. He has written for a long list of investment publications, Forbes Inc, tradeMONSTER, optionMONSTER OptionsXpress Active Trader Magazine, Reuters, Wiley Trading, and other like publications and similar companies.

Jon ‘DRJ’ Najarian is a professional investor, noted media analyst and speaker, and cofounder of optionMONSTER® and tradeMONSTER®. Following a brief stint as a Chicago Bears linebacker, Jon launched his financial career at the Chicago Board Options Exchange (CBOE) in 1981, trading in the pits for 22 of the past 29 years. In 1989 he founded Mercury Trading, running the company for 15 years until 2004, when he sold his floor-trading operations to Citadel, one of the world’s largest hedge funds. More recently, Jon – often known after his CBOE floor call letters ‘DRJ’ – has developed and patented trading applications used to identify unusual activity in stock, option, and futures markets, notably the Heat Seeker® program, which uncovers extraordinary buying patterns from among the 800,000 quotes per second that stream from America’s stock, options, and futures exchanges. In addition to optionMONSTER.com, Jon’s research and analysis is widely cited by leading financial media including the Wall Street Journal, Barron’s, Reuters, Bloomberg, Dow Jones, FOX News Channel, CBS Radio, and CNBC. Jon is a CNBC contributor, hosts a daily radio show, and webcasts twice daily on CBOE-TV.

company info:

When OptionsANIMAL was created, the goal was simple, they hoped to create the most extensive and complete options and spread trading education anywhere. They are able to deliver the education in a convenient, online format. The vision of OptionsANIMAL is improving the quality of life of individual investors by empowering them with the proper skills to protect their money, well being, and retirement. Currently offering 45 online classes on topics ranging from stock market basics to double diagonals and trade adjustments. With OptionsAnimal, investors get a complete education. Investors are taught proven strategies designed to help them become a successful trader in any market condition. In fact, they guarantee it. Perhaps the most vibrant part about OptionsANIMAL is the trading community built around the education and is comprised of thousands of students from all over the world.The unique thing about OptionsANIMAL instructors is that every one of them are actively trading, and doing so successfully in the stock market and have graduated the OptionsANIMAL education.

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NASDAQ OMX and SunGard APT Extend Partnership to Deliver Risk Analytics for NASDAQ OMX Green Economy Indexes

NASDAQ OMX and SunGard APT Extend Partnership to Deliver Risk Analytics for NASDAQ OMX Green Economy Indexes

New York, NY (PRWEB) April 06, 2011

SunGard’s APT and The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) today announced their existing risk analytics partnership has been extended to include the NASDAQ OMX Green Economy Indexes, helping portfolio managers explore the investment risk and opportunities associated with stocks in the Global Green Economy. While the new family of green indexes from NASDAQ OMX provides an essential tool for stock selection, portfolio allocation and benchmarking, investors looking for more than a benchmark will be able to benefit from APT’s risk analytics to assess opportunities in the growing ‘Green’ investment trend.

Through SunGard’s APT, which provides risk modeling, reporting, risk attribution and scenario analysis capabilities, firms will be able to gain greater insight into NASDAQ OMX Green Economy Indexes, in turn helping enhance investment decision making. Free weightings and components for the NASDAQ OMX Green Economy Index family are now available to APT customers. In addition, select indexes are available in APT risk analysis reports.

John Jacobs, executive vice president, NASDAQ OMX Global Index Group, said, “As the global economy recovers, investors are focusing more on sustainable investments. NASDAQ OMX offers a complete family of indexes tracking the growing environmental and clean-energy sector, and we are delighted to extend our partnership with SunGard’s APT to help buy-side investors better understand the risk and return trade-offs of their positions in Green Economy Index-related products.”

Dr. Laurence Wormald, head of research of SunGard’s APT business unit, said“Investors are demanding more transparency into the risks and exposures associated with any index or index-linked investment. SunGard’s APT offers fast and flexible risk analytics that can help improve investment decisions by building more robust portfolios across asset classes, regions and investment styles.”    

SunGard’s APT helps investment firms manage risk by providing models and reporting that include risk measures (such as portfolio tracking error, value at risk (VaR) and volatility), risk attribution and scenario analysis. This information will be updated automatically to provide analytics on a range of NASDAQ OMX indexes, including the green indexes. To access the APT and NASDAQ OMX risk reports, visit http://www.sungard.com/go/apt/nasdaq. In addition, NASDAQ OMX and SunGard provide a subset of this information on their respective websites as a complimentary offering.

Combining the economic factors that power renewable and clean growth, NASDAQ OMX’s comprehensive family of indexes covers the entire green economic landscape with constituents that are selected across all industry sectors participating in the green solution. At the head of the family is the all-inclusive NASDAQ OMX Green Economy Index (NASDAQ:QGREEN). Companies for the entire Green Economy Index Family are selected by Rona Fried, Ph.D. of SustainableBusiness.com, LLC. For more information about NASDAQ OMX’s Green Economy Index Family, visit https://indexes.nasdaqomx.com/green.aspx.

About NASDAQ OMX Global Index Group

NASDAQ OMX Global Index Group is engaged in the design, development, calculation, licensing, and marketing of NASDAQ OMX Indexes. NASDAQ OMX Global Index Group specializes in the development of indexes focusing on NASDAQ OMX’s brand themes of innovation, technology, growth, and globalization. NASDAQ OMX Global Index Group also provides custom index services and design solutions as a third-party provider to selected financial organizations. For more information about NASDAQ OMX indexes, visit http://www.nasdaqomx.com/indexes.

Access to essential historical index data for NASDAQ OMX indexes can be accessed from a single source, NASDAQ OMX Global Index Watch. For additional information, please visit https://indexes.nasdaqomx.com/indexwatch.aspx.

About NASDAQ OMX Group

The NASDAQ OMX Group, Inc. is the world’s largest exchange company. It delivers trading, exchange technology and public company services across six continents, with approximately 3,600 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit http://www.nasdaqomx.com. Please follow NASDAQ OMX on Facebook (http://www.facebook.com/pages/NASDAQ-OMX/108167527653) and Twitter (http://www.twitter.com/nasdaqomx).

About SunGard’s APT

SunGard’s APT provides investment technology for a broad range of asset classes, countries and regions including data and software for understanding market risk, credit risk, liquidity risk and for portfolio construction and performance analysis. APT provides investors with statistical market risk models, performance and risk analytics and portfolio optimization and construction tools. APT’s customers include institutional and retail asset managers, pension funds, private wealth managers, hedge funds, broker/dealers, prime brokers and proprietary traders. http://www.sungard.com/apt/learnmore

About SunGard

SunGard is one of the world’s leading software and technology services companies. SunGard has more than 20,000 employees and serves 25,000 customers in 70 countries. SunGard provides software and processing solutions for financial services, higher education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software. With annual revenue of about $ 5 billion, SunGard is ranked 380 on the Fortune 500 and is the largest privately held business software and IT services company. For more information, please visit SunGard at http://www.sungard.com.

Trademark Information: SunGard, the SunGard logo and APT are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.

Cautionary Note Regarding Forward-Looking Statements

The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about the NASDAQ OMX Green Economy Indexes. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX’s control. These factors include, but are not limited to factors detailed in NASDAQ OMX’s annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.

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Advanced Options Trading Strategies: Effectively Using Risk Capital

Options trading expert Fred Oltarsh discusses advanced options on futures trading strategies. Strategies include: Bull Strategies, Bear Strategies, Call Spreads, Put Spreads, Ratio Spreads, Bull Fence, Bear Fence, Options Pairs, S&P Options strategy, Coffee Futures Options strategy, Soybeans…
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The Oxford Princeton Programme Announces Debut of Energy Derivatives Pricing, Hedging and Risk Management Training Course in Southern California

The Oxford Princeton Programme Announces Debut of Energy Derivatives Pricing, Hedging and Risk Management Training Course in Southern California

Princeton, NJ (PRWEB) August 30, 2009

The Oxford Princeton Programme, the world’s leading provider of education and training solutions to the energy and derivatives markets, is pleased to announce the Southern California arrival of Energy Derivatives Pricing, Hedging and Risk Management on October 28-29, 2009 in Anaheim.

“California and especially Greater Los Angeles, served by several utilities and other power providers, makes it among the most active energy markets in North America and therefore proves to be an ideal location for the launch of this landmark course out west,” says Jobert E. Abueva, Global Marketing and North American Sales Director, The Oxford Princeton Programme.

Energy Derivatives Pricing, Hedging and Risk Management (DPH2)

October 28-29, 2009 – Anaheim, CA

16 CPE credits

Energy Derivatives Pricing, Hedging and Risk Management (DPH2) builds on the concepts and instruments presented in Energy Derivatives Markets, Instruments and Hedging (DPH1) and provides an overview of Energy derivatives Pricing and Risk Management.

It begins with a review of Energy Price Behavior, Probability and Statistics and various Excel exercises with hands-on calculations of various risk statistics. As a review and extension of some of the structures presented in DPH1, a common framework to analyze derivatives structures and long term contracts is also presented.

The course also covers an introduction to derivatives pricing models and relevant accounting rules such as FAS 157. Implied volatility and “Greeks” are presented using practical exercises. The course also covers analysis of structured products used by producers and end-users such as extendable swaps; spot price models, geometric Brownian motion and mean-reverting models for pricing and risk analysis; market risk with particular emphasis on VaR; basis risk and derivatives in energy markets with an overview of hedge effectiveness under FAS 133. The course concludes with an overview of stress testing for energy derivatives portfolios.

Course Contents:

Review of energy price behavior, probability and statistics
Energy derivatives structures
Mark-to-market vs. mark-to-model: introduction to derivatives pricing Models: conceptual interpretation. Uses. pros and cons
Analysis of derivative strategies
Energy price behavior: overview of spot price models

Market risk management for energy trading
Basis risk and derivatives in energy markets
Stress testing and backtesting for energy and commodity firms

Who Should Attend?

Those who should attend include market risk managers, energy traders, trading managers, end-users of derivatives in corporations, credit risk analysts, risk consultants, risk and audit committee members and CFOs. Additionally, treasury managers, finance department personnel, compliance managers, middle and back-office personnel, treasurers, treasury analysts and chief risk officers should attend.

Delegates will receive course materials, lunch and a certificate upon successful completion. Seats are limited to ensure proper in-depth coverage. For those with widespread company interest, this course may also be scheduled as an in-house presentation.

This course fulfills one of the requirements towards The Oxford Princeton Programme’s Certificate in Derivatives Pricing, Hedging and Risk Management.

Please contact Andrew Infante for more information about this or any of The Oxford Princeton Programme’s wide array of training options at +1 (609) 520-9099 or via email news (at) oxfordprinceton (dot) com.

For a complete course outline and for other information, visit http://www.oxfordprinceton.com.

About the Oxford Princeton Programme, Inc.:

The Oxford Princeton Programme, Inc., with regional offices in Princeton, NJ, Oxford, UK and Singapore, is the world’s leading provider of education and training solutions to the energy and derivatives industries. In addition to PrincetonLive.com, which offers more than 25 energy and commodity web-based training modules, The Oxford Princeton Programme provides more than 70 instructor-led training courses. Designed for all levels of expertise, courses include views of oil, power, natural gas and a variety of other energy and derivatives topics.

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