Get an understanding of gross margins of transport, storage and production & consumption capacity. Master the relation to trading activity in terms of securing future cashflows, e.g., via spreads.

Workshop title
“Essentials of Markets & Trading”.

Duration
1-day session.

When?
This 1-day workshop is provided each year on the following three dates:

• The Tuesday following the 1^st Monday in February – Winter session
• The Tuesday following the 1^st Monday in June        – Spring session
• The Tuesday following the 1^st Monday in October   – Autumn session

Target group
Any junior in a business, control or support function at a market operator, market facilitator or market participant who is ready to become a medior, and for those who already are medior.

Learning objectives:

• Conquer ins & outs regarding exchange-traded futures contracts (including pricing, clearing, margining, and netting).
• Get a clear overview of the concept ‘spread’.
• Understand the basic financials of physical assets in the supply chain.
• Master the process of hedging physical capacity in the supply chain.
• Understand the implications of locking in future financial contributions.
• Master practical knowledge about futures spreads and spread futures.
• Develop competencies in the field of position management.
• Gain expertise in the field of spread as value differential, as well as integrated tradable product.

Content
The following topics will be addressed during the workshop:

• Economics of the supply chain
  • Financials
    • Assets
      • Transport capacity
      • Storage capacity
      • Processing (or combined production and consumption) capacity
    • Gross and net (operational or processing) margins
    • Spreads
      • Location spreads
      • Time spreads
      • Cross-commodity spreads
• Financial margins
  • Differential
    • Location spread
    • Time spread
    • Seasonal spread
    • Cross-commodity spread
    • Margin spread
    • Differential spread
    • Quality spread
  • Futures spread
    • The legs
    • Varieties
      • Location spread
      • Time spread
      • Cross-commodity spread – Introduction
      • Cross-commodity spread – Spark spread
      • Cross-commodity spread – Dark spread
      • Cross-commodity spread – Black spread
      • Cross-commodity spread – Crack spread
      • Cross-commodity spread – Crush spread
    • Transacting a futures spread
      • Opening a time spread position
      • Closing a time spread position
      • Opening a location spread position
      • Closing a location spread position
      • Opening a cross-commodity spread position
      • Closing a cross-commodity spread position
  • Spread option
    • Location spread option
    • Time spread option
    • Cross-commodity spread option