This two-day course provides an overview of energy derivatives and physical markets as well as the main instruments traded in those markets. We will explore the main differences between physical and paper transactions as well as the pros and cons of exchange-traded vs. OTC products. We will show how to trade and understand the use of futures, forwards and swaps to mitigate market risk. The course will also provide an overview of option contracts and hedging and speculation strategies using options and simple structures. This applied course will also cover strategic and tactical issues for alternative hedging strategies used by producers and end-users. We also review the relevant accounting rules for valuation and hedge accounting such as IAS 39/IFRS9.

The topics covered in DPH1 and DPH2 can assist delegates preparing for GARP's Energy Risk Professional (ERP) exam.

Recommended preparation courses: Fundamentals of Futures, Fundamentals of Options, Front to Back Office: Trading Controls and Best Practices