Forward Curve

Short description

Analyse the forward curve over time; master its dynamics.
This simulation mimics the fundamentals of the trading environment and market activity. Focus is only on relevant aspects so that you cannot be distracted by (currently) irrelevant aspects. The modular setup of this simulation allows therefore for gradually grasping one concept or process after another, making it very suitable for non-traders. Actually, it is suitable for all professionals with a role in (or relating to) the wholesale commodity or energy markets. It is very suitable for non-traders as terminology is covered on the go, thereby intuitively embedding concepts and processes.

Capacity

You act in the role of a trader.
You act in the capacity of aggressor.

Task

Your task is to analyse this shape and level of the forward curve. News makes the prices of all contracts change, although, some more than others. Watch the curve to move from contango to backwardation and vice versa.

Objective

The aim of this simulation is to learn about contango and backwardation, as well as the steepness of the forward curve.

Conclusion

At the end of the simulation, draw your conclusion which contract (out of the ten) has been the most volatile and which contract has shown to lowest volatility.

 

Our Labels

Entrima and Market Abuse Centre (MAC) are the two labels we operate to provide learning services for professionals in the commodity & energy markets.
 
 


Content & Context

Entrima’s mission is to transfer knowledge regarding the business, controls & operations of parties in (or relating to) the wholesale markets.

www.entrima.org


Conduct & Culture

MAC’s mission is to facilitate the prevention & detection of misconduct and to foster proper behaviour in organisations. This is achieved via training, periodic updates and increased awareness.

www.marketabusecentre.com