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Baltic Academy: Advanced Freight Modelling & Trading

The next round of live webinars for the Advanced Freight Modelling & Trading training course starts on 30 November. Run by the Baltic Academy, the course is suitable for experienced freight traders and covers the pricing of freight options, modelling freight rate dynamics as well as constructing forward curves on freight, modelling freight rate volatility as well as hedging and trading strategies using FFA and freight options.

The course consists of pre-recorded videos, supporting materials and live webinars and is delivered via a learning platform.

Cost: £787 + vat (30% discount for Baltic Exchange members). See https://www.balticexchange.com/content/dam/balticexchange/consumer/documents/Baltic%20Academy-6.pdf for full details or contact [email protected]

Course overview

• Introduction to freight market: Freight contracts; characteristics of the freight market; relationship between spot & time-charter freight rates

• FFAs: Practicalities of trading; hedging and trading examples

• Spot price dynamics: Mathematical models for freight rates; mean reversion, seasonality and jump diffusion models; estimating and setting up models

• How to construct a forward curve

• Technical analysis & freight trading: Chart analysis; technical trading rules; spread trading; implied TC rates

• Using options: hedging and option trading strategies; pricing options; writing and risk management of option positions

• Modelling freight rate volatility: Volatility models (historical, time-varying & implied); estimation and interpretation; forecasting volatility

• Real options: option to choose (spot vs timecharter); option to lay-up; real options and ship valuation; real options and extended Net Present Value; identifying and valuing real options in shipping
Source: Baltic Exchange

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