Energy Trading Question
Let's say you have just been hired into an energy trading group (North American power and gas only) at a BB bank. You have your choice of desks. In what order would you rank these groups?
NYMEX gas East Gas East Power ERCOT West gas West power
Also, you could trade either flat price or options.
I would say get yourself onto a power desk. Hopefully you'll get the opportunity to trade heat rate options, etc.
Can you please tell me why the power desk is better than a nat gas desk? I will be starting out as a real time energy trader in Houston but I will probably do a rotation on the nat gas desk.
NYMEX gas East Gas ERCOT East Power West gas West power
Gas is usually better than power...
little strong but desk looking to hire and train would be ideal... in a perfect work we all trade crude and travel the world... but get in where you can and learn learn learn
Most crude traders (not the NYMEX macro fund giants) talk on the phone all day and handle deals, yes its easy money if your at a big shop and contango comes in. But if you like looking at charts, technicals and lots of different points would look at something else.
I would say Power has had a better year in opportunistic than natty has, because the market has been in a funk while Power has more volatility of a run here and there.
Also I think NYMEX gas is different than all the others since those are physical basis points. The NYMEX past a certain time horizon is basically majorly technically driven, you need to know options and more about the overall flow of institutional money. I mean the guy's are DRW are not looking at fundumentals when they are trading NYMEX options day in and out, they math smarties pushing and supporting their trade price points.
Trading physical/basis is all about the fundumentals, how the overall grid map flows and trades.
good point bud
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