OTC markets... CME Clearport... how does one begin trading OTC derivatives?

[Sig]

You're right, I don't know how electricity markets work yet. I figured I would learn the trade mechanics first.

If anybody has ever actively traded an OTC derivative, I'd appreciate it if you could offer some advice on how I would even approach this... I've been "googling" but nothing so far.

This just isn't an option for a retail trader. I work in the electricity industry and understand it better than most but don't trade electricity, imho you're insane to think you can just figure it out on your own. It's incredibly complex, there are few books and even fewer web sites that explain how it works, and you really have to have worked in the industry for a while to understand the mechanics. I'll advise you to try one of the iso websites to get an idea of how electricity is bought and sold, pjm.com or iso-ne.com are a good start.

 

[B Johnson]

What about just pure gambling... if I disregarded the actual supply/demand mechanics and just speculated (blindly), could a retail trader share the ability to buy/sell say, futures contracts with a some kind of OTC account?

 

[Sig]

What about just pure gambling... if I disregarded the actual supply/demand mechanics and just speculated (blindly), could a retail trader share the ability to buy/sell say, futures contracts with a some kind of OTC account?

As was posted, the account size requirements make this unrealistic for your retail account less than several $million.

 

[trilogic]

b johnson, you can PM me , not sure what your up to but SIG is correct very complex market, if you have "information" and you want to buy an option because of this knowledge eyes and ears are everywhere.. .so I want nothing to do with that sort of thing, but speculation another matter

For example if you think power is cheap because of gas, I agree and if you want to capitalize on it we can talk

 

[OddTrader]

Perhaps here:

Q
http://www.garp.org/?_escaped_fragment_=/erp_study_materials/#!/erp_study_materials/

Part I Books

These are the official books for the ERP Exam Part I.

Volume I

Introduction to Energy Commodities and Risk Management
Crude Oil Markets and Refined Products
Natural Gas and Coal Markets

Volume II

Electricity Markets and Renewable Generation

Candidate cost:USD $250.00, plus shipping.
Buy 2016 ERP Exam Part I Books
Part II Books

These are the official books for the ERP Exam Part II.

Volume I

Price Formation in Energy Markets
Financial Energy Products

Volume II

Risk Management Tools

Candidate cost:USD $250.00, plus shipping.
Buy 2016 ERP Exam Part II Books
2016 ERP Exam Part I eBooks

Digital-only access to both volumes of the ERP Exam Part I books through the eBook application.

Volume I

Introduction to Energy Commodities and Risk Management
Crude Oil Markets and Refined Products
Natural Gas and Coal Markets

Volume II

Electricity Markets and Renewable Generation

Candidate cost:USD $250.00, plus shipping.
Buy 2016 ERP Exam Part I eBooks
2016 ERP Exam Part II eBooks

Digital-only access to both volumes of the ERP Exam Part II Course Pack through the eBook application.

Volume I

Price Formation in Energy Markets
Financial Energy Products

Volume II

Risk Management Tools

Candidate cost:USD $250.00, plus shipping.
Buy 2016 ERP Exam Part II eBooks

UQ

 

[ogarbitrage]

While the ERP is a good place to start (I have one), you will need do to quite a bit more research into the market, not to mention the $10 million required to spec.