Energy Trading Question

NakedShort's picture
Rank: Chimp | 8

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.

Comments (8)

Jan 21, 2010

I would say get yourself onto a power desk. Hopefully you'll get the opportunity to trade heat rate options, etc.

Jun 2, 2010

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.

Jun 2, 2010

NYMEX gas
East Gas
ERCOT
East Power
West gas
West power

Jun 2, 2010

Gas is usually better than power...

Jun 2, 2010
RedHill:

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

Learn More

Boost your resume and land a finance job by passing the FINRA SIE. 264 pages & 1981 smart flashcards written by a former 8X top Fidelity instructor. Try it for 0 bananas here.

Jun 2, 2010
monty09:
RedHill:

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.

Jun 2, 2010
adehbone:
monty09:
RedHill:

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.

good point bud

Jun 4, 2010
Comment