The global pandemic has caused millions of workers worldwide to rethink their goals, careers, and ambitions. If this describes your scenario, you may be looking for something new. Energy trading courses could be the key to unlocking a whole new career path for you.
At the DTN Institute, we’re passionate about helping people achieve their goals through learning, training, and education. With live and on-demand courses, we offer the tools you need to build an exciting career.
What Is Energy Trading?
At its basic level, energy trading refers to the buying, selling, and moving of bulk energy. These transactions allow multiple energy commodities to move from production to market. They include:
- Natural Gas
- Crude Oil
Just as people buy and sell copper, gold, or crops, the same commodities trading happens with energy. Because the market can be volatile, those who have an interest in speculating can make a successful career in trading.
Much of energy trading is as a futures commodity. That is, buyers and sellers enter into a contract that must be fulfilled at a set future date.
For example, a seller may promise to deliver a set number of barrels of crude oil to a buyer for a determined price on a specific date. This “future” contract allows the buyer to lock in current rates for something they will need later. If prices have gone up by the time the buyer needs the product, they will have saved money.
Of course, it can also go the other way. Prices may drop in the interim, and the buyer then “overpays” due to the existing contract. This volatility and attempt at prediction is precisely what some traders enjoy in the energy industry. It’s a sort of game.
Energy traders fully submerge themselves in the ebb and flow of supply and demand. Some of these market conditions change seasonally. For example, during North America’s cold months, the need for heating fuel rises.
There also can be daily cycles in energy demand, in particular for electricity. When offices close down at the end of the day on the east coast, the need for electricity dips. Traders learn to pay attention to these cycles.
Other times, conditions shift drastically within days or even hours. These dramatic changes can occur when global circumstances impact the supply or demand.
When COVID-19 hit, and stay-at-home orders came about, most travel stopped. This halt created a significant change in the energy market within days.
As the name suggests, any energy trader’s primary role is to “move the molecules” – energy. Essentially, it moves from where it is produced to where it is needed via the acquisition and sale of shares.
The asset traded is usually natural gas supplies, oil, liquid gas, or electricity on the power grid. There is also a growing demand for carbon-neutral and solar energy.
The trader buys and sells shares of energy at a given price, in an attempt to make a profit. They use sophisticated analytical tools, such as software and meteorological data, to predict the trend of energy prices.
For instance, a weather report may forecast a significant heatwave for a particular area. This data may prompt a trader to buy up electricity shares at their current price.
Once the heatwave hits, there will be a higher demand for electricity due to air conditioning, fans, and cooling systems. As a result, the shares will be worth more, and the trader can make a profit.
What Do Energy Trading Courses Teach?
Classes and training in energy trading offer individuals the education they need to succeed in the industry. Working and growing as an energy trader is fast-paced and exciting, but it also requires a high level of skill and knowledge.
Energy trading courses provide a solid foundation for any part of the industry you work in or want to join. Some training options include:
- Introductory Overview
- Natural Gas Trading
- Petroleum Industry
- Crude Oil
- Hedge Trading
- Upstream, Midstream, Downstream Markets
- Jargon and Lingo
- Risk Management
- Energy Trading for Non-Traders – This type of class is perfect for people who support energy trading businesses without doing the actual trading.
What Is Energy Trading Certification?
To launch and thoroughly maintain your energy trading career, certifications are the right way to go. Some employers require you to carry this certification before they hire you. There are two certification programs available, depending on your career goals and preferences.
Certified Energy Professional (CEP)
Completing training as a Certified Energy Professional gives you knowledge about the fundamentals of the energy industry. This secure foundation is crucial for building and growing your career, and is the perfect starting point for any professional.
This certification is suitable for those in a wide range of areas in energy trading. It can be ideal for individuals connected to the energy market through:
Certified Energy Trading Professional (CEPT)
For next-level instruction, consider the Certified Energy Trading Professional course. This path provides training in futures, derivatives, and options.
It also trains students on industry best practices and technical analysis. Hedging for energy commodities is part of this certification, as well. The CEPT is ideal for anyone working in the physical or financial energy markets and will advance your energy trading knowledge.
Do I Need Certification?
Energy trading certification offers more than a fancy certificate. It will form the bedrock of your career. The education you receive in this training provides the perfect starting point to a thriving career in the energy market.
Employers and fellow traders will know that you take your role seriously and are committed to excellence. Plus, you will be able to work with confidence as you begin and then grow your trading career.
DTN Has You Covered
The DTN team is committed to empowering our customers so that they can prosper. We help them grow profitable businesses by offering the highest-quality training available.
Talk with an expert today to learn how our educational offerings help you stand out from the crowd.