Fundamentals of Trading Energy Futures & Options, 2nd Edition

In today’s changing political and economic environment, it is increasingly important that companies learn to properly use the various trading instruments to protect themselves against price volatility. Since the first successful energy futures contract was introduced almost a quarter century ago, trading in energy futures and options has played an important role in hedging against fluctuations in the price of petroleum products, crude oil, natural gas, propane, electricity, and most recently, coal.

In this 2nd edition of their best-selling primer, authors Errera and Brown explain how exchange traded futures and options markets work, and how companies can successfully use the markets in their overall strategy to increase profitability. They cover everything from market mechanics, hedging, spread trading, and technical trading to history and growth of the markets. Also included is an extensive appendix detailing contract specifications for 13 energy futures/options contracts.

List of Figures
List of Tables
Acknowledgments
Introduction

Chapter 1 : Futures and Options Contracts and Markets
Chapter 2 : Market Mechanics
Chapter 3 : Behavior of Commodity Futures Prices
Chapter 4 : Speculation and Spread Trading
Chapter 5 : Hedging
Chapter 6 : Introduction to Options on Futures
Chapter 7 : Energy Options Strategies
Chapter 8 : Technical Factors
Chapter 9 : History and Growth
Chapter 10 : Economic Implications of Energy Futures and Options

Appendix A : New York Mercantile Exchange No. 2 Heating Oil Futures and Options Contract Specifications
Appendix B : New York Mercantile Exchange New York Harbor Unleaded Gasoline Futures and Options Contract Specifications
Appendix C : New York Mercantile Exchange Light, Sweet Crude Oil Futures and Options Contract Specifications
Appendix D : New York Mercantile Exchange Henry Hub Natural Gas Futures and Options Contract Specifications
Appendix E : New York Mercantile Exchange Propane Futures Contract Specifications
Appendix F : New York Mercantile Exchange Four Electricity (Palo Verde, California-Oregon Border, Cinergy, Entergy) Futures and Options Contract Specifications
Appendix G : International Petroleum Exchange Gas Oil Futures and Options Contract Specifications
Appendix H : International Petroleum Exchange Brent Crude Oil Futures and Options Contract Specifications
Appendix I : International Petroleum Exchange Natural Gas NBP Futures Contract Specifications
Appendix J : New York Mercantile Exchange Central Appalachian Coal Futures Contract Specifications
Appendix K : New York Mercantile Exchange Crack Spread Options Contract Specifications
Glossary of Commodity Futures and Energy Industry Terms
Index