Understanding Risk Management And Hedging In Oil Trading

Author : Chris Heilpern
Publisher : Springer Nature
ISBN 13 : 3031444655
Total Pages : 173 pages
Book Rating : 4.54/5 ( download)

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Download or read book Understanding Risk Management and Hedging in Oil Trading written by Chris Heilpern and published by Springer Nature. This book was released on 2023-12-20 with total page 173 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers a simplified, clear, and logical explanation of risk and hedging in oil trading built up from basics. It provides techniques to identify and manage risk—legal risk, operational risk, financial risk, moral risk, etc.—in oil trading with the key chapters discussing price risk and hedging. Written by an industry expert with real-world experience and featuring examples based on real trades, the book allows readers to understand the principles and applications without being overwhelmed or misled by jargon and assumptions, and will be of interest to commodity traders, investment bankers, risk managers, and anyone looking to gain further knowledge about oil market risks and hedging.

Author : Simo M. Dafir
Publisher : John Wiley & Sons
ISBN 13 : 1119026733
Total Pages : 312 pages
Book Rating : 4.30/5 ( download)

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Download or read book Fuel Hedging and Risk Management written by Simo M. Dafir and published by John Wiley & Sons. This book was released on 2016-03-11 with total page 312 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Author : Patrick Cusatis
Publisher : McGraw Hill Professional
ISBN 13 : 9780071454537
Total Pages : 396 pages
Book Rating : 4.35/5 ( download)

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Download or read book Hedging Instruments and Risk Management written by Patrick Cusatis and published by McGraw Hill Professional. This book was released on 2005-02-22 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt: Books on complex hedging instruments are often more confusing than the instruments themselves. Hedging Instruments & Risk Management brings clarity to the topic, giving money managers the straightforward knowledge they need to employ hedging tools and techniques in four key markets—equity, currency, fixed income, and mortgage. Using real-world data and examples, this high-level book shows practitioners how to develop a common set of mathematical and statistical tools for hedging in various markets and then outlines several hedging strategies with the historical performance of each.

Author : Geoffrey Poitras
Publisher : Routledge
ISBN 13 : 1136262601
Total Pages : 426 pages
Book Rating : 4.09/5 ( download)

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Download or read book Commodity Risk Management written by Geoffrey Poitras and published by Routledge. This book was released on 2013-03-05 with total page 426 pages. Available in PDF, EPUB and Kindle. Book excerpt: Commodity Risk Management goes beyond just an introductory treatment of derivative securities, dealing with more advanced topics and approaching the subject matter from a unique perspective. At its core lies the concept that commodity risk management decisions require an in-depth understanding of speculative strategies, and vice versa. The book offers readers a unified treatment of important concepts and techniques that are useful in applying derivative securities in the management of risk in commodity markets. While some of these techniques are well known and fairly common, Poitras offers applications to specific situations and links to speculative trading strategies - extensions of the material that not only are hard to come by, but helpful to both the academic and the practitioner. The book is divided into three parts. The first part deals with the general framework for commodity risk management, the second part focuses on the use of derivative security contracts in commodity risk management, and the third part deals with applications to three specific situations. As a textbook, this book is designed to appeal to classes at a senior undergraduate/MBA/MA levelof training in Finance, financial economics, actuarial science, management science, agriculturaleconomics and accounting. There will also be interest for the book as: a monograph for research libraries, a handbook for individuals working in the commodity risk management industry, and a guidebook for those in the general public interested in topics like farm risk management or the assessment of hedging practices of publicly-traded commodity producers.

Author : Peter C. Fusaro
Publisher : McGraw Hill Professional
ISBN 13 : 9780786311842
Total Pages : 290 pages
Book Rating : 4.43/5 ( download)

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Download or read book Energy Risk Management written by Peter C. Fusaro and published by McGraw Hill Professional. This book was released on 1998 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Author : Christian Sadrinna
Publisher : GRIN Verlag
ISBN 13 : 3640635876
Total Pages : 89 pages
Book Rating : 4.70/5 ( download)

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Download or read book Hedging Energy Risks with Derivative Instruments in Oil Trading written by Christian Sadrinna and published by GRIN Verlag. This book was released on 2010-06-02 with total page 89 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2010 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 2,2, University of Applied Sciences Essen, language: English, abstract: The financial crisis has proven how volatile markets can become within a very shor t period of time. One commodity that went through peaks and troughs is without doubt oil. A wide range of companies with business activities relying on the commodity and stable pricing, also went through highs and lows, whilst some went into liquidation. This circumstance let many companies think carefully about their risk exposure and how they effectively can manage it. This paper shows that: The main exercise to mitigate risk is a well-structured risk management operation which deliver the fundamentals for an effective usage of derivative instruments. Prior to any securing activity with swaps or options, companies must pin-point their current risk position, portfolios and their values. On this, the classical portfolio theory with the various modern extensions and portfolio analysis tools deliver a good concept for this question, however, oil has cer tain characteristics which companies need to take into consideration. Furthermore, the portfolio theory may not helping to mitigate risk that is driven by economic factors, hence, spreading risk in an essential part, but some risks can only be addressed other means. All variables may be used to derive, the hedging strategy, time horizon and trading instrument. Especially for the instruments, the paper shows a wide range of commonly used instruments and how they can be applied for distinct oil risk issues.

Author : Oleg V. Bychuk
Publisher : John Wiley & Sons
ISBN 13 : 111808537X
Total Pages : 322 pages
Book Rating : 4.70/5 ( download)

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Download or read book Hedging Market Exposures written by Oleg V. Bychuk and published by John Wiley & Sons. This book was released on 2011-06-28 with total page 322 pages. Available in PDF, EPUB and Kindle. Book excerpt: Identify and understand the risks facing your portfolio, how to quantify them, and the best tools to hedge them This book scrutinizes the various risks confronting a portfolio, equips the reader with the tools necessary to identify and understand these risks, and discusses the best ways to hedge them. The book does not require a specialized mathematical foundation, and so will appeal to both the generalist and specialist alike. For the generalist, who may not have a deep knowledge of mathematics, the book illustrates, through the copious use of examples, how to identify risks that can sometimes be hidden, and provides practical examples of quantifying and hedging exposures. For the specialist, the authors provide a detailed discussion of the mathematical foundations of risk management, and draw on their experience of hedging complex multi-asset class portfolios, providing practical advice and insights. Provides a clear description of the risks faced by managers with equity, fixed income, commodity, credit and foreign exchange exposures Elaborates methods of quantifying these risks Discusses the various tools available for hedging, and how to choose optimal hedging instruments Illuminates hidden risks such as counterparty, operational, human behavior and model risks, and expounds the importance and instability of model assumptions, such as market correlations, and their attendant dangers Explains in clear yet effective terms the language of quantitative finance and enables a non-quantitative investment professional to communicate effectively with professional risk managers, "quants", clients and others Providing thorough coverage of asset modeling, hedging principles, hedging instruments, and practical portfolio management, Hedging Market Exposures helps portfolio managers, bankers, transactors and finance and accounting executives understand the risks their business faces and the ways to quantify and control them.

Author : Tadahiro Nakajima
Publisher : Springer Nature
ISBN 13 : 9811956030
Total Pages : 145 pages
Book Rating : 4.34/5 ( download)

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Download or read book Energy Trading and Risk Management written by Tadahiro Nakajima and published by Springer Nature. This book was released on 2022-11-03 with total page 145 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Author : T. James
Publisher : Springer
ISBN 13 : 1403946043
Total Pages : 553 pages
Book Rating : 4.41/5 ( download)

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Download or read book Energy Price Risk written by T. James and published by Springer. This book was released on 2002-12-03 with total page 553 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Author : P. Fusaro
Publisher : Springer
ISBN 13 : 0230510965
Total Pages : 382 pages
Book Rating : 4.68/5 ( download)

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Download or read book Energy Hedging in Asia: Market Structure and Trading Opportunities written by P. Fusaro and published by Springer. This book was released on 2005-08-02 with total page 382 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on the latest developments in the Asia-Pacific community in terms of how deregulation and privatization are bringing more risk to energy companies. In the light of these market changes, interest in energy risk management has grown substantially and is becoming a fiduciary responsibility of energy companies. As energy trading, power exchanges and hedging techniques establish themselves in the oil, power and gas sectors, so then do newer derivatives markets emerge in LNG hedging, weather derivatives and freight hedging. Fusaro and James, as seasoned market practitioners in the region, focus on these market changes and examine the future of Asian energy hedging.