Refined products with specific demand cycles. 2. How Futures Work
Airlines use futures to lock in fuel prices (hedging), while traders aim to profit from price swings (speculation). 3. The Power of Options
Contracts are uniform (e.g., 1,000 barrels for Crude). Fundamentals of Trading Energy Futures and Options
The EIA (Energy Information Administration) weekly data is "must-watch" TV for energy traders.
A polar vortex or a mild winter can send Natural Gas prices on a rollercoaster. 5. Managing the Risk Refined products with specific demand cycles
Your loss is capped at the premium paid for the option.
A is a legal agreement to buy or sell a specific quantity of energy at a predetermined price on a future date. A polar vortex or a mild winter can
Use them to protect a current position or bet on market volatility without owning the underlying asset. 4. What Moves the Market?