Energy Trading Question

Subscribe

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)

 
Jun 2, 2010 - 6:43pm

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 - 6:43pm

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

Start Discussion

Total Avg Compensation

September 2020 Investment Banking

  • Director/MD (17) $704
  • Vice President (45) $323
  • Associates (255) $228
  • 3rd+ Year Analyst (37) $203
  • 2nd Year Analyst (141) $153
  • Intern/Summer Associate (133) $141
  • 1st Year Analyst (561) $129
  • Intern/Summer Analyst (543) $82

Leaderboard See all

1
LonLonMilk's picture
LonLonMilk
98.3
2
Jamoldo's picture
Jamoldo
98.3
3
Secyh62's picture
Secyh62
98.2
4
CompBanker's picture
CompBanker
97.8
5
Addinator's picture
Addinator
97.6
6
redever's picture
redever
97.6
7
Edifice's picture
Edifice
97.6
8
frgna's picture
frgna
97.5
9
NuckFuts's picture
NuckFuts
97.5
10
bolo up's picture
bolo up
97.4