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| energy trading and risk management: Energy Trading and Risk Management Felix Müsgens, |
| energy trading and risk management: Energy Trading and Risk Management Iris Marie Mack, 2014-04-07 A comprehensive overview of trading and risk management in the energy markets Energy Trading and Risk Management provides a comprehensive overview of global energy markets from one of the foremost authorities on energy derivatives and quantitative finance. With an approachable writing style, Iris Mack breaks down the three primary applications for energy derivatives markets – Risk Management, Speculation, and Investment Portfolio Diversification – in a way that hedge fund traders, consultants, and energy market participants can apply in their day to day trading activities. Moving from the fundamentals of energy markets through simple and complex derivatives trading, hedging strategies, and industry-specific case studies, Dr. Mack walks readers through energy trading and risk management concepts at an instructive pace, supporting her explanations with real-world examples, illustrations, charts, and precise definitions of important and often-misunderstood terms. From stochastic pricing models for exotic derivatives, to modern portfolio theory (MPT), energy portfolio management (EPM), to case studies dealing specifically with risk management challenges unique to wind and hydro-electric power, the bookguides readers through the complex world of energy trading and risk management to help investors, executives, and energy professionals ensure profitability and optimal risk mitigation in every market climate. Energy Trading and Risk Management is a great resource to help grapple with the very interesting but oftentimes complex issues that arise in energy trading and risk management. |
| energy trading and risk management: Energy Trading and Risk Management Iris Marie Mack, 2014-05-12 A comprehensive overview of trading and risk management in the energy markets Energy Trading and Risk Management provides a comprehensive overview of global energy markets from one of the foremost authorities on energy derivatives and quantitative finance. With an approachable writing style, Iris Mack breaks down the three primary applications for energy derivatives markets – Risk Management, Speculation, and Investment Portfolio Diversification – in a way that hedge fund traders, consultants, and energy market participants can apply in their day to day trading activities. Moving from the fundamentals of energy markets through simple and complex derivatives trading, hedging strategies, and industry-specific case studies, Dr. Mack walks readers through energy trading and risk management concepts at an instructive pace, supporting her explanations with real-world examples, illustrations, charts, and precise definitions of important and often-misunderstood terms. From stochastic pricing models for exotic derivatives, to modern portfolio theory (MPT), energy portfolio management (EPM), to case studies dealing specifically with risk management challenges unique to wind and hydro-electric power, the bookguides readers through the complex world of energy trading and risk management to help investors, executives, and energy professionals ensure profitability and optimal risk mitigation in every market climate. Energy Trading and Risk Management is a great resource to help grapple with the very interesting but oftentimes complex issues that arise in energy trading and risk management. |
| energy trading and risk management: Energy Trading and Risk Management Steven Berley, 2016-04-09 The first trading, hedging and risk management books for energy and commodity markets truly taking one from the strategy to the software, including the human nature level. Enhancing by developing and communicating trading, hedging and risk management strategies to software that correlate to the corporate objectives of maximizing cash flow and earnings are key. Through stories of human nature impacts, trading stories, market volatility, risk, macro and micro economics, and the trading tools, software, ETRM software, and processes necessary to have a mature, successfully developed trading, risk management and hedging program. Mr. Berley depicts the statistics to stochastics, including other quantitative modeling techniques for physical optimization to asset modeling, to risk and to accounting. Agriculture, Energy, Oil, Power, Natural Gas, NGLs, Chemicals, Oil Products, Gasoline, Heating Oil, Propane, and Ethane products will be used throughout to depict strategies you can use today! |
| energy trading and risk management: Energy Markets Tom James, 2012-11-27 Price Risk Management and Trading. Energy risk management expert, Tom James, does it again. His latest book is a timely addition to the rapidly developing energy trading markets. This book should be on every energy trader, risk manager and corporate planer's desk. it is an easy read as Tom goes into great detail to explain the intricacies of this market and its various unique elements. - Peter C. Fusaro, Chairman, Global Change Associates Inc., Best-selling Author and Energy Expert This sensible and practical guide is essential for those seeking an understanding of commerce in energy derivatives. beyond merely informative, this hand book for the practitioner details the finer points of the use of derivatives as tools for price-risk management. No energy trading desk should be without it. - Ethan L. Cohen, Senior Director, Utility and Energy Technology, UtiliPoint International Inc. Energy markets are much more volatile than other commodity markets, so risk mitigation is more of a concern. Energy prices, for example, can be affected by weather, geopo9litical turmoil, changes in tax and legal systems, OPEC decisions, analysis' reports, transportation issues, and supply and demand - to name just a few factors. Tom James's book is a practical guide to assessing and managing these risks. It is a must-read for senior management as well as risk and financial professionals.- Don Stowers, Editor, Oil & Gas Financial Journal This book is the most comprehensive on price risk management-centric efforts. It provides the reader with a tangible experience of derivatives in today's capital and energy markets. The breadth and scope of the passages are immense, in that both developed and developing countries' energy markets are considered and examples applied. Terrific read! - Rashpal Bhatti, Marketing Manager, Energy Trading Asia, Enron/BHP Billiton Tom James has simplified the intricacies of a very complex market. In this new market of hot commodities, he has been able to give a fresh course to those who are new to the energy markets and a solid review for those that are well seasoned. he covers everything within the oil market from A to Z in this book and does it well. Coming from a financial background myself, it's good to finally find a book that can bring a better understanding to the field of energy commodities. - Carl Larry, Vice President Citi Energy Global Commodities |
| energy trading and risk management: Energy Trading and Investing Davis W. Edwards, 2009-11-01 “The essential training manual for anyone who expects to profi tably engage the energy market while avoiding the devils lurking in the details.” Kurt Yeager, former President and CEO of the Electric Power Research Institute and coauthor of Perfect Power Shrinking fossil fuel supplies, volatile prices, deregulation, and environmental conservation have transformed the energy market into a major arena for making money. In response, an unprecedented amount of capital and investment manpower has fl ooded into the energy market. Older utilities are finding that their quiet, safe business has changed dramatically in a short period of time. Now, Energy Trading and Investing provides a big-picture introduction to the industry along with the trading know-how and fi nancial details that every market participant needs for success. This hands-on guidebook covers all types of energy markets—from the big-three markets of electricity, natural gas, and oil to the growing markets for liquefied natural gas, emissions, and alternative energy. It provides useful information on the interdependence of the different energy markets, who the major players are, and how Wall Street trades energy products. Energy Trading and Investing features: An overview of the entire energy market In-depth descriptions of all of the major energy commodities Financially oriented discussions of how chemistry, physics, accounting, and option pricing affect trading Primers on load forecasting, tolling agreements, natural gas storage, and more A practical introduction to risk management Written by a pioneering quant in the energy market, Energy Trading and Investing provides a highly disciplined and organized approach to profi ting from energy investments. This potent combination of detailed, up-to-date information alongside expert know-how thoroughly prepares you to invest and trade with confi dence in the energy market. If you’re a serious trader, you need to understand the energy markets, and Energy Trading and Investing is the only book you need to trade successfully in this growing sector. |
| energy trading and risk management: Energy Markets Tom James, 2008 The Energy Markets - is the practitioners' guide to trading the markets and optimizing company performance using the correct price risk strategies and tools. As a company exposed to the price increases/decreases and the high volatility in energy prices experienced since the turn of the new century, this book will help you put in place the management controls and reporting structures necessary to ensure that your hedging programme achieves its goals and does not add unexpected or unwanted risks to your firm. As a direct traderin these markets or as an investor in hedge funds in the energy sector it will give you an insight to the global energy markets and their operation. Inspired by the success of the courses Professor Tom James runs in global energy and commodities trading and price risk management, the book includes a wealth of practical knowledge applied to the market place. |
| energy trading and risk management: Energy Trading and Risk Management Steven Berley, 2016-04-09 Mr. Steven Berley is a former Trading Leader, Risk Director, and Controller working at Enron, Koch Supply & Trading, and Shell. Mr. Berley also has several years' experience directly working for a major ETRM vendor and has been an independent expert trading and software consultant for many years with Front-2-Back Energy Trading Consulting. Along with possessing an MBA and CPA, Mr. Berley is truly the rare expert in the Energy and Commodity Trading and Risk Management field. This is the first trading, hedging and risk management book for energy and commodity markets that truly takes the reader from the strategy to the software, all while including the impact of human nature. 'Energy Trading and Risk Management' will show you how to attain a mature, successful trading, risk management and hedging program by developing and communicating trading, hedging and risk management strategies to software that correlate to the corporate objectives of maximizing cash flow and earnings. 'Energy Trading and Risk Management' depicts strategy to software, statistics to stochastics, physical optimization to asset modeling, and risk to accounting. Agriculture, Energy, Oil, Power, Natural Gas, NGLs, Chemicals, Oil Products, Gasoline, Heating Oil, Propane, and Ethane products are used throughout to show the reader strategies to software that can be used TODAY! |
| energy trading and risk management: Energy and Power Risk Management Alexander Eydeland, Krzysztof Wolyniec, 2003-02-03 Praise for Energy and Power Risk Management Energy and Power Risk Management identifies and addresses the key issues in the development of the turbulent energy industry and the challenges it poses to market players. An insightful and far-reaching book written by two renowned professionals. -Helyette Geman, Professor of Finance University Paris Dauphine and ESSEC The most up-to-date and comprehensive book on managing energy price risk in the natural gas and power markets. An absolute imperative for energy traders and energy risk management professionals. -Vincent Kaminski, Managing Director Citadel Investment Group LLC Eydeland and Wolyniec's work does an excellent job of outlining the methods needed to measure and manage risk in the volatile energy market. -Gerald G. Fleming, Vice President, Head of East Power Trading, TXU Energy Trading This book combines academic rigor with real-world practicality. It is a must-read for anyone in energy risk management or asset valuation. -Ron Erd, Senior Vice President American Electric Power |
| energy trading and risk management: Energy Risk: Valuing and Managing Energy Derivatives Dragana Pilipovic, 2007-08-13 The Latest Methods and Strategies for Successfully Trading and Managing Risk in Today's Volatile Energy Markets The updated Second Edition of Energy Risk presents an authoritative overview of the contemporary energy trading arena, combining the lesson's from the last decade with proven methods and strategies required for valuing energy derivatives and managing risk in these ever volatile markets. Written by renowned energy risk expert Dragana Pilipovic this revised classic examines market behavior, covering both quantitative analysis and trader-oriented insights. The book shows how to establish a modeling process that involves the key players_managers, traders, quantitative analysts, and engineers_and provides practical answers to energy trading and risk management questions. The Second Edition of Energy Risk features: Detailed coverage of the primary factors that influence energy risk Techniques for building marked-to-market forward price curves, creating volatility matrices, and valuing complex options Specific guidelines and tools for achieving risk goals New to this edition: three new chapters on the emerging energy market and marked-to-market issues; new material on energy-specific models, seasonal effects, and the derivation of the mean-reverting price model; and more |
| energy trading and risk management: Valuation and Risk Management in Energy Markets Glen Swindle, 2014-02-17 This book surveys the mechanics of energy markets and the valuation of structures commonly arising in practice. The presentation balances quantitative issues and practicalities facing portfolio managers, with substantial attention paid to the ways in which common methods fail in practice and to alternative methods when they exist. The book will provide readers with the analytical foundation required to function in modern energy trading and risk management groups. |
| energy trading and risk management: Energy Risk Management Peter C. Fusaro, 1998 Addressing the important issues of worldwide energy price risk management, this work assembles the leading industry figures to explain general theories and practices for hedging risk, and specific methods to effectively manage risk in markets such as coal, natural gas, electricity, and hydropower. |
| energy trading and risk management: Energy Trading & Investing 2E (PB) Davis W. Edwards, 2017-01-27 The popular guide to earning stunning profits in the energy markets—updated with critical information on virtually every market, from fossil fuels to renewable energy. Energy Trading & Investing, 2nd Edition, brings readers up to date on everything they need to know about the energy revolutions that are changing the world – how fracking has the U.S. awash in cheap oil and natural gas; how alternative energy technologies like solar and wind are shaking up utilities; and how changes in the electrical grid are being addressed by multi-state organizations. A long-time veteran of the energy markets, Edwards offers practical advice to help energy investors choose profitable energy investments. The book is written in plain English and has been expanded with information to assist small and large investors, candidates for MBAs and finance degrees, and candidates for professional certifications in risk management understand the risks and benefits of the energy industry. Now is the time for you to enter the energy market or expand your position. Let Energy Trading & Investing guide you every step of the way. |
| energy trading and risk management: Energy Trading and Risk Management Tadahiro Nakajima, Shigeyuki Hamori, 2022-11-03 This book introduces empirical methods for analyzing energy markets. Even beginners in econometrics and mathematical finance must be able to learn how to utilize these methodologies and how to interpret the analysis results. This book provides some example analyses of the North American, European, and Asian energy markets. The reader will experience some theories and practices of energy trading and risk management. This book reveals the characteristics of energy markets using quantitative analyses. Examples include unit root, cointegration, long-term equilibrium, stochastic arbitrage simulation, multivariate generalized autoregressive conditional heteroscedasticity (GARCH) models, exponential GARCH (EGARCH) models, optimal hedge ratio, copula, value-at-risk (VaR), expected shortfall, vector autoregressive (VAR) models, vector moving average (VMA) models, connectedness, and frequency decomposition. This book is suitable for people interested in the empirical study of energy markets and energy trade. |
| energy trading and risk management: Energy Price Risk T. James, 2002-12-03 Energy Price Risk was inspired by the success of the courses Tom James has been running in global energy and commodities trading and price risk management. It is the practitioner's guide to optimizing company performance using the correct price risk strategies and tools. Based on the author's extensive experience in the commodity derivatives industry, it comprehensively covers the full spectrum of the energy complex, including crude oil, petroleum products, natural gas, LPG/LNG and electricity. Using many worked examples, this book offers practical insights and solutions. |
| energy trading and risk management: Risk Management in Commodity Markets Helyette Geman, 2009-01-22 Commodities represent today the fastest growing markets worldwide. Historically misunderstood, generally under- studied and under- valued, certainly under- represented in the literature, commodities are suddenly receiving the attention they deserve. Bringing together some of the best authors in the field, this book focuses on the risk management issues associated with both soft and hard commodities: energy, weather, agriculturals, metals and shipping. Taking the reader through every part of the commodities markets, the authors discuss the intricacies of modelling spot and forward prices, as well as the design of new Futures markets. The book also looks at the use of options and other derivative contract forms for hedging purposes, as well as supply management in commodity markets. It looks at the implications for climate policy and climate research and analyzes the various freight derivatives markets and products used to manage shipping and freight risk in a global commodity world. It is required reading for energy and mining companies, utilities’ practitioners, commodity and cash derivatives traders in investment banks, CTA’s and hedge funds |
| energy trading and risk management: Handbook of Multi-Commodity Markets and Products Andrea Roncoroni, Gianluca Fusai, Mark Cummins, 2015-02-19 Handbook of Multi-Commodity Markets and ProductsOver recent decades, the marketplace has seen an increasing integration, not only among different types of commodity markets such as energy, agricultural, and metals, but also with financial markets. This trend raises important questions about how to identify and analyse opportunities in and manage risks of commodity products. The Handbook of Multi-Commodity Markets and Products offers traders, commodity brokers, and other professionals a practical and comprehensive manual that covers market structure and functioning, as well as the practice of trading across a wide range of commodity markets and products. Written in non-technical language, this important resource includes the information needed to begin to master the complexities of and to operate successfully in today’s challenging and fluctuating commodity marketplace. Designed as a practical practitioner-orientated resource, the book includes a detailed overview of key markets – oil, coal, electricity, emissions, weather, industrial metals, freight, agricultural and foreign exchange – and contains a set of tools for analysing, pricing and managing risk for the individual markets. Market features and the main functioning rules of the markets in question are presented, along with the structure of basic financial products and standardised deals. A range of vital topics such as stochastic and econometric modelling, market structure analysis, contract engineering, as well as risk assessment and management are presented and discussed in detail with illustrative examples to commodity markets. The authors showcase how to structure and manage both simple and more complex multi-commodity deals. Addressing the issues of profit-making and risk management, the book reveals how to exploit pay-off profiles and trading strategies on a diversified set of commodity prices. In addition, the book explores how to price energy products and other commodities belonging to markets segmented across specific structural features. The Handbook of Multi-Commodity Markets and Products includes a wealth of proven methods and useful models that can be selected and developed in order to make appropriate estimations of the future evolution of prices and appropriate valuations of products. The authors additionally explore market risk issues and what measures of risk should be adopted for the purpose of accurately assessing exposure from multi-commodity portfolios. This vital resource offers the models, tools, strategies and general information commodity brokers and other professionals need to succeed in today’s highly competitive marketplace. |
| energy trading and risk management: Foundations of Energy Risk Management GARP (Global Association of Risk Professionals), 2008-11-10 GARP's Fundamentals of Energy Risk Management introduces investors to the basic components and some of the basic terminology used in the energy industry. It covers the commodity cycle, energy use and sources, and various risk types, various energy products and the markets where energy is traded. It also introduces certain risk management fundamentals and real option thinking. The book is GARP's required text used by risk professionals looking to obtain their Certificate in Energy Risk Management. |
| energy trading and risk management: Ctrm & Etrm Systems Berley, 2016-05-06 Mr. Steven Berley is a former Trading Leader, Risk Director, and Controller working at Enron, Koch Supply & Trading, and Shell. Mr. Berley also has several years' experience directly working for a major C/ETRM vendor and has been an independent expert trading and software consultant for many years with Front-2-Back Energy Trading Consulting. Along with possessing an MBA and CPA, Mr. Berley is truly the rare expert in the Commodity & Energy Trading and Risk Management field. This is his second book in the C/ETRM space. The first book, Energy Trading and Risk Management, focused on trading, hedging and risk strategies. This second book on C/ETRM systems covers all facets of commodity and energy trading systems from selection to requirements to selection to project management and beyond. The approach suggested in this book will save any company millions of dollars in software and project implementation. |
| energy trading and risk management: Trends in Energy Trading and Risk Management Software Gary M. Vasey, 2006-05 Acclaimed energy experts Dr. Gary M. Vasey and Mr. Andrew Bruce edit the definitive book on the software used to support energy trading, transaction and risk management in the first of Energy and Utility analysts UtiliPoint International Expert Series. |
| energy trading and risk management: Managing Energy Risk Markus Burger, Bernhard Graeber, Gero Schindlmayr, 2008-04-30 Mathematical techniques for trading and risk management. Managing Energy Risk closes the gap between modern techniques from financial mathematics and the practical implementation for trading and risk management. It takes a multi-commodity approach that covers the mutual influences of the markets for fuels, emission certificates, and power. It includes many practical examples and covers methods from financial mathematics as well as economics and energy-related models. |
| energy trading and risk management: Selecting and Implementing Energy Trading, Transaction and Risk Management Software Gary Vasey, Patrick Reames, 2008 Energy trading, transaction and risk management (ETRM) software solutions are the highly specialized systems used by companies engaged in the production, buying, selling, moving and managing of energy commodities. With more than 70 firms offering ETRM solutions, from established companies servicing the entirety of the energy value chain, to smaller and sometimes upstart companies offering focused solutions for specialized links in that chain, selecting the right product and bringing that solutions on board can be a daunting task. This book, the second installment of the UtiliPoint Expert Series, follows Trends in Energy Trading, Transaction and Risk Management Software - A Primer and provides valuable insights into the process of selecting, implementing and maintaining these critical systems. It is intended to create a more complete understanding of those critical activities that will be the ultimate determinate of success for any company seeking to improve their ability to compete in a complex and dynamic energy commodities market. In addition to providing information about the specific activities involved in ETRM system selection, implementation, and maintenance, this book also provides in-depth discussions of critical tasks and decision points within those activities, including the importance of testing and the management of historical transactional information. Other topics will assist clients to better understand the business models of their ETRM solutions providers, as the strategies and decisions made by those vendors can have significant implications for the users of their systems. |
| energy trading and risk management: Risk Management in Trading Davis Edwards, 2014-06-30 A comprehensive resource for understanding how to minimize risk and increase profits In this accessible resource, Wall Street trader and quantitative analyst Davis W. Edwards offers a definitive guide for nonprofessionals which describes the techniques and strategies seasoned traders use when making decisions. Risk Management in Trading includes an introduction to hedge fund and proprietary trading desks and offers an in-depth exploration on the topic of risk avoidance and acceptance. Throughout the book Edwards explores the finer points of financial risk management, shows how to decipher the jargon of professional risk-managers, and reveals how non-quantitative managers avoid risk management pitfalls. Avoiding risk is a strategic decision and the author shows how to adopt a consistent framework for risk that compares one type of risk to another. Edwards also stresses the fact that any trading decision that isn't based on the goal of maximizing profits is a decision that should be strongly scrutinized. He also explains that being familiar with all the details of a transaction is vital for making the right investment decision. Offers a comprehensive resource for understanding financial risk management Includes an overview of the techniques and tools professionals use to control risk Shows how to transfer risk to maximize results Written by Davis W. Edwards, a senior manager in Deloitte's Energy Derivatives Pricing Center Risk Management in Trading gives investors a hands-on guide to the strategies and techniques professionals rely on to minimize risk and maximize profits. |
| energy trading and risk management: Energy Trading & Hedging Tom Seng, 2019 This book focuses primarily on the energy products that are financially traded on the New York Mercantile Exchange: crude oil, natural gas, unleaded gasoline, and heating oil. These commodities are the most common ones used for hedging energy commodity risk. Each of these products has a profound effect on the United States and international economies. It discusses several of the factors that influence energy price direction, the financial instruments used in the market, and how commercial entities utilize these instruments to hedge the risks inherent in energy production and consumption, such as price and physical risk. It also addresses the use of energy financial derivatives strictly for profit (speculative trading) and the exchanges that make efficient and competitive trading possible. The physical cash market is addressed along with the major industry publications that produce market prices, known as postings or indexes. Additionally, the book briefly discusses technical analysis, using charts to identify price trends and predict directional changes. Finally, the book discusses the need for stringent controls on the trading of financial energy derivatives to avoid some of the more notorious pitfalls that have led to the collapse of major global companies and institutions. Features and Benefits Supply / Demand Fundamentals Market overviews (financial and physical) Contracts Derivatives Technical Analysis Risk Controls Audience Field level personnel Management Energy lending and finance professionals Anyone who seeks to understand how, or relies upon, energy markets Students |
| energy trading and risk management: Handbook of Risk Management in Energy Production and Trading Raimund M. Kovacevic, Georg Ch. Pflug, Maria Teresa Vespucci, 2013-11-27 This book presents an overview of the risks involved in modern electricity production, delivery and trading, including technical risk in production, transportation and delivery, operational risk for the system operators, market risks for traders, and political and other long term risks in strategic management. Using decision making under uncertainty as a methodological background, the book is divided into four parts, with Part I focusing on energy markets, particularly electricity markets. Topics include a nontechnical overview of energy markets and their main properties, basic price models for energy commodity prices, and modeling approaches for electricity price processes. Part II looks at optimal decisions in managing energy systems, including hydropower dispatch models, cutting plane algorithms and approximative dynamic programming; hydro-thermal production; renewable; stochastic investments and operational optimization models for natural gas transport; decision making in operating electricity networks; and investment in extending energy production systems. Part III explores pricing, including electricity swing options and the pricing of derivatives with volume control. Part IV looks at long-term and political risks, including energy systems under aspects of climate change, and catastrophic operational risks, particularly risks from terrorist attacks. |
| energy trading and risk management: Energy Risk Management Andrew S. Hyman, 2006-01-01 |
| energy trading and risk management: Energy Finance and Economics Betty Simkins, Russell Simkins, 2013-02-19 Thought leaders and experts offer the most current information and insights into energy finance Energy Finance and Economics offers the most up-to-date information and compelling insights into the finance and economics of energy. With contributions from today's thought leaders who are experts in various areas of energy finance and economics, the book provides an overview of the energy industry and addresses issues concerning energy finance and economics. The book focuses on a range of topics including corporate finance relevant to the oil and gas industry as well as addressing issues of unconventional, renewable, and alternative energy. A timely compendium of information and insights centering on topics related to energy finance Written by Betty and Russell Simkins, two experts on the topic of the economics of energy Covers special issues related to energy finance such as hybrid cars, energy hedging, and other timely topics In one handy resource, the editors have collected the best-thinking on energy finance. |
| energy trading and risk management: The Handbook of Energy Trading Stefano Fiorenzani, Samuele Ravelli, Enrico Edoli, 2012-02-06 To thrive in today's booming energy trading market you need cutting-edge knowledge of the latest energy trading strategies, backed up by rigorous testing and practical application Unique in its practical approach, The Handbook of Energy Trading is your definitive guide. It provides a valuable insight into the latest strategies for trading energy—all tried and tested in maintaining a competitive advantage—illustrated with up-to-the-minute case studies from the energy sector. The handbook takes you through the key aspects of energy trading, from operational strategies and mathematical methods to practical techniques, with advice on structuring your energy trading business to optimise success in the energy market. A unique integrated market approach by authors who combine academic theory with vast professional and practical experience Guidance on the types of energy trading strategies and instruments and how they should be used Soaring prices and increasingly complex global markets have created an explosion in the need for robust technical knowledge in the field of energy trading, derivatives, and risk management. The Handbook of Energy Trading is essential reading for all energy trading professionals, energy traders, and risk managers, and in fact anyone who has ever asked: 'what is energy trading?' |
| energy trading and risk management: Energy Derivatives Les Clewlow, Chris Strickland, 2000 |
| energy trading and risk management: Valuation and Risk Management in Energy Markets Glen Swindle, 2014-02-17 Valuation and Risk Management in Energy Markets surveys the mechanics of energy markets and the valuation of structures commonly arising in practice. The presentation balances quantitative issues and practicalities facing portfolio managers, with substantial attention paid to the ways in which common methods fail in practice and to alternative methods when they exist. The material spans basic fundamentals of markets, statistical analysis of price dynamics, and a sequence of increasingly challenging structures, concluding with issues arising at the enterprise level. In totality, the material has been selected to provide readers with the analytical foundation required to function in modern energy trading and risk management groups. |
| energy trading and risk management: Energy Risk Management Steve Leppard, 2005-01 A concise and focused report that explains the concept of energy price hedging in an accessible format ideally tailored for busy practitioners. |
| energy trading and risk management: Commodity Risk Management Geoffrey Poitras, 2013 This book aims to cover the following general topics: development and assessment of theories for evaluating commodity risk; the role of derivative securities in managing commodity risk; and, an assessment of the actual management of commodity risk in specific situations. The primary contribution of the book is the explicit development of the often overlooked connection between risk management and speculation. The central theme is to demonstrate that commodity risk management decisions require an in depth understanding of speculative strategies. To this end, this book aims to provide a unified treatment of important concepts and techniques that are useful in applying derivative securities in the management of risk arising in commodity markets. |
| energy trading and risk management: Fuel Hedging and Risk Management Simo M. Dafir, Vishnu N. Gajjala, 2016-03-11 A hands-on guide to navigating the new fuel markets Fuel Hedging and Risk Management: Strategies for Airlines, Shippers and Other Consumers provides a clear and practical understanding of commodity price dynamics, key fuel hedging techniques, and risk management strategies for the corporate fuel consumer. It covers the commodity markets and derivative instruments in a manner accessible to corporate treasurers, financial officers, risk managers, commodity traders, structurers, as well as quantitative professionals dealing in the energy markets. The book includes a wide variety of key topics related to commodities and derivatives markets, financial risk analysis of commodity consumers, hedge program design and implementation, vanilla derivatives and exotic hedging products. The book is unique in providing intuitive guidance on understanding the dynamics of forward curves and volatility term structure for commodities, fuel derivatives valuation and counterparty risk concepts such as CVA, DVA and FVA. Fully up-to-date and relevant, this book includes comprehensive case studies that illustrate the hedging process from conception to execution and monitoring of hedges in diverse situations. This practical guide will help the reader: Gain expert insight into all aspects of fuel hedging, price and volatility drivers and dynamics. Develop a framework for financial risk analysis and hedge programs. Navigate volatile energy markets by employing effective risk management techniques. Manage unwanted risks associated with commodity derivatives by understanding liquidity and credit risk calculations, exposure optimization techniques, credit charges such as CVA, DVA, FVA, etc. |
| energy trading and risk management: Handbook Of Energy Finance: Theories, Practices And Simulations Stephane Goutte, Duc Khuong Nguyen, 2020-01-30 Modeling the dynamics of energy markets has become a challenging task. The intensification of their financialization since 2004 had made them more complex but also more integrated with other tradable asset classes. More importantly, their large and frequent fluctuations in terms of both prices and volatility, particularly in the aftermath of the global financial crisis 2008-2009, posit difficulties for modeling and forecasting energy price behavior and are primary sources of concerns for macroeconomic stability and general economic performance.This handbook aims to advance the debate on the theories and practices of quantitative energy finance while shedding light on innovative results and technical methods applied to energy markets. Its primary focus is on the recent development and applications of mathematical and quantitative approaches for a better understanding of the stochastic processes that drive energy market movements. The handbook is designed for not only graduate students and researchers but also practitioners and policymakers. |
| energy trading and risk management: Quantitative Methods for Electricity Trading and Risk Management S. Fiorenzani, 2006-01-31 This book presents practical Risk Management and Trading applications for the Electricity Markets. Various methodologies developed over the last few years are considered and current literature is reviewed. The book emphasizes the relationship between trading, hedging and generation asset management. |
| energy trading and risk management: Commodity Trade and Finance Michael Tamvakis, 2015-04-10 What affects the supply of oil? How important is the weather in determining grain prices? Why has the price of copper skyrocketed? This unique book analyses the economics of key commodity groups, including energy, agriculture and metals. It examines the supply/demand fundamentals of several major and minor commodities, physical characteristics, production and consumption patterns, trade flows and pricing mechanisms. It also explains the main tools used to hedge price risk, such as futures, options and swaps. This second edition has been fully revised and restructured, and contains four new chapters, including oil refining, electricity and price risk management for energy, metals and agricultural commodities This book is an indispensable reference text for students, academics and those working in the commodity business. |
| energy trading and risk management: Managing Operational Risk in Financial Markets Amanat Hussain, 2000-06-05 Risk management is one of the biggest issues facing the financial markets today. This volume outlines the major issues for risk management and focuses on operational risk as a key activity in managing risk on an enterprise-wide basis. |
| energy trading and risk management: The Professional Risk Managers' Guide to the Energy Market Professional Risk Managers' International Association (PRMIA), 2007-12-21 An essential resource for all financial professionals affected by energy prices, The Professional Risk Managers’ Guide to the Energy Market presents a complete account of the evolution, tools, scope, and breadth of the energy and environmental financial markets. Sponsored by the PRMIA Institute and edited by renowned analyst Peter Fusaro, the book includes contributions from 20 world experts who discuss every aspect of energy trading and the risks associated with specific investment vehicles and energy sectors. Organized in three parts, The Professional Risk Managers’ Guide to the Energy Market begins with a comprehensive overview of the energy market, goes on to provide an in-depth review of energy risk management tools, and finally delivers detailed coverage of risk management software, energy hedging in Asian markets, trading electricity options, and weather risk management strategies. Designed to improve investment insights and skills, The Professional Risk Managers’ Guide to the Energy Market features timely chapters on: Energy Futures Today The Over-the-Counter Energy Derivatives Market Energy Derivatives Structures The Nordic Electricity Markets Market Risk Measurement and Management for Energy Firms Best Practices in Credit Risk Management for Energy and Commodity Derivatives Natural Gas Trading Risk Management in Energy-Focused Commodity Futures Investing The ISDA Master Agreement Ten Years On, ISDA 2002 Authoritative and comprehensive, The Professional Risk Managers’ Guide to the Energy Market equips risk managers, institutional investors, and financial analysts with all the information, tools, and strategies required to understand and succeed in the fast-changing global energy marketplace. |
| energy trading and risk management: Managing Climate Risk in the U.S. Financial System Leonardo Martinez-Diaz, Jesse M. Keenan, 2020-09-09 This publication serves as a roadmap for exploring and managing climate risk in the U.S. financial system. It is the first major climate publication by a U.S. financial regulator. The central message is that U.S. financial regulators must recognize that climate change poses serious emerging risks to the U.S. financial system, and they should move urgently and decisively to measure, understand, and address these risks. Achieving this goal calls for strengthening regulators’ capabilities, expertise, and data and tools to better monitor, analyze, and quantify climate risks. It calls for working closely with the private sector to ensure that financial institutions and market participants do the same. And it calls for policy and regulatory choices that are flexible, open-ended, and adaptable to new information about climate change and its risks, based on close and iterative dialogue with the private sector. At the same time, the financial community should not simply be reactive—it should provide solutions. Regulators should recognize that the financial system can itself be a catalyst for investments that accelerate economic resilience and the transition to a net-zero emissions economy. Financial innovations, in the form of new financial products, services, and technologies, can help the U.S. economy better manage climate risk and help channel more capital into technologies essential for the transition. https://doi.org/10.5281/zenodo.5247742 |
| energy trading and risk management: Advanced Positioning, Flow, and Sentiment Analysis in Commodity Markets Mark J. S. Keenan, 2020-02-18 The definitive book on Positioning Analysis — a powerful and sophisticated framework to help traders, investors and risk managers better understand commodity markets Positioning Analysis is a powerful framework to better understand commodity price dynamics, risk, and sentiment. It indicates what each category of trader is doing—what they are trading, how much they are trading and how they might behave under a variety of different circumstances. It is essential in isolating specific types of flow patterns, defining behavioral responses, measuring shifts in sentiment, and developing tools for better risk management. Advanced Positioning, Flow and Sentiment Analysis in Commodity Markets explains the fundamentals of Positioning Analysis and presents new concepts in Commodity Positioning Analytics. This invaluable guide helps readers recognize how certain types of positioning patterns can be used to develop models, indicators, and analyses that can be used to enhance performance. This updated second edition contains substantial new material, including analytics based on the analysis of flow, the decomposition of trading flows, trading activity in the Chinese commodity markets, and the inclusion of Newsflow into Positioning Analysis. Author: Mark J S Keenan, also covers the structure of positioning data, performance attribution of speculators, sentiment analysis and the identification of price risks and behavioral patterns that can be used to generate trading signals.. This must-have resource: Offers intuitive and accessible guidance to commodity market participants and risk managers at various levels and diverse areas of the market Provides a wide range of analytics that can be used directly or integrated into a variety of different commodity-related trading, investment, and risk management programs Features an online platform comprising a wide range of customizable, regularly-updated analytical tools Contains an abundance of exceptional graphics, charts, and illustrations Includes easy-to-follow instructions for building analytics. Advanced Positioning, Flow and Sentiment Analysis in Commodity Markets: Bridging Fundamental and Technical Analysis, 2nd Edition is an indispensable source of information for all types of commodity traders, investors, and speculators, as well as investors in other asset classes who look to the commodity markets for price information. |
Using liquid air for grid-scale energy storage - MIT News
Apr 10, 2025 · The model then draws on state-of-the-art pricing data that’s released every year by the National Renewable Energy Laboratory (NREL) and is widely used by energy modelers …
New facility to accelerate materials solutions for fusion energy
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The role of modeling in the energy transition - MIT News
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Tackling the energy revolution, one sector at a time
Nov 8, 2024 · “Folks in the industry know that some kind of energy transition needs to happen, but they may not necessarily know for certain what the most viable path forward is,” says Liang. …
Using liquid air for grid-scale energy storage - MIT News
Apr 10, 2025 · The model then draws on state-of-the-art pricing data that’s released every year by the National Renewable Energy Laboratory (NREL) and is widely used by energy modelers …
New facility to accelerate materials solutions for fusion energy
6 days ago · By utilizing this approach, the PSFC is executing a major public-private partnership in fusion energy, realizing a research model that the U.S. fusion community has only recently …
Recovering from the past and transitioning to a better energy future ...
5 days ago · Transitioning to a decarbonized electricity system is one piece of the puzzle. Growing amounts of solar and wind energy — along with nuclear, hydropower, and geothermal — are …
Transforming fusion from a scientific curiosity into a powerful clean ...
Dec 11, 2024 · The problem got harder when, in Hartwig’s last year in graduate school, the Department of Energy announced plans to terminate funding for the Alcator C-Mod tokamak, a …
A new approach could fractionate crude oil using much less energy
May 22, 2025 · Most of that energy goes into the heat needed to separate the components by their boiling point. In an advance that could dramatically reduce the amount of energy needed for …
Explained: Generative AI’s environmental impact - MIT News
Jan 17, 2025 · Plus, generative AI models have an especially short shelf-life, driven by rising demand for new AI applications. Companies release new models every few weeks, so the energy …
Study shows how households can cut energy costs - MIT News
Jan 13, 2025 · In the U.S., separate research has shown that about three in 10 households report trouble paying energy bills. To conduct the experiment, the researchers ran two versions of an …
Taking the “training wheels” off clean energy | MIT News ...
Apr 3, 2025 · The good: Clean energy investment in the United States hit an all-time high of $272 billion in 2024. The bad: Announcements of future investments have tailed off. And the ugly: …
The role of modeling in the energy transition - MIT News
Jan 7, 2025 · EIA is the statistical and analytic agency within the U.S. Department of Energy, with a mission to collect, analyze, and disseminate independent and impartial energy information to …
Tackling the energy revolution, one sector at a time
Nov 8, 2024 · “Folks in the industry know that some kind of energy transition needs to happen, but they may not necessarily know for certain what the most viable path forward is,” says Liang. …
