Is energy “quantable”
As we know, quants usually are the group of people who profit in equities markets
but will commodities/energy be affected by quants in the same way?
I understand there is the physical side to the space, but i am referring to the “derivative” traders that do commodities. Or do you think that one day the commodities market will be just like equities?
Hmm. I think there already is a lot of 'quant' action in markets like natural gas, power, weather derivatives, etc.
As for physical traders in a lot of commodities, 'quanting' not as effective because what they are doing largely isn't math in the first place. It's relationships and logistics solutions.
Thank you, where do you see the role of traders who trade derivatives instead of the physical product going? Do you think it would disappear?
It has already happened.. limiting factor is liquidity for more niché derivatives
Thank you, where do you see the role of traders who trade derivatives instead of the physical product going? Do you think it would disappear?
yes lots of quanty stuff in the financial gas markets (options swaps etc etc)
also a lot of modelling/quanty stuff in valuing natural gas storage contracts
Thank you, where do you see the role of traders who trade derivatives instead of the physical product going? Do you think it would disappear?
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