Iron Ore Trading and Risk Management
Start Date | End Date | Venue | Fees (US $) | ||
---|---|---|---|---|---|
Iron Ore Trading and Risk Management | 09 Nov 2025 | 13 Nov 2025 | Cairo, Egypt | $ 3,500 | Register |

Iron Ore Trading and Risk Management
Start Date | End Date | Venue | Fees (US $) | |
---|---|---|---|---|
Iron Ore Trading and Risk Management | 09 Nov 2025 | 13 Nov 2025 | Cairo, Egypt | $ 3,500 |
Introduction
This course will provide executives with the essential risk management and hedging methods needed to carry out an effective risk management strategy in today’s volatile iron ore market. The course provides a practical working knowledge of iron ore trading, equipping you with valuable day-to-day tools that can be applied as soon as you are back in the office.
Objectives
This course will provide executives with the essential risk management and hedging methods needed to carry out an effective risk management strategy in today’s volatile iron ore market. The course provides a practical working knowledge of iron ore trading, equipping you with valuable day-to-day tools that can be applied as soon as you are back in the office.
Training Methodology
This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practice. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.
Who Should Attend?
- Mining companies
- Steel producers
- Iron ore and steel traders and marketers
- Shipping and logistics managers
- Banks and financial institution executives
- Importers/exporters
- Middle and back-office managers
- Risk managers
- Consultants
- Hedge funds
Course Outline
The core objectives of the course are to achieve a practical, working understanding of key risk management and speculative trading tools in the iron ore shipping markets including:
- Structured deals
- Freight derivatives
- Iron ore contract provisions
- Clearing and options
Introduction
- The importance of risk management in iron ore and commodities trading
The iron ore physical market
- Physical seaborne iron ore trading volumes
- Main exporters and importers, and trading flows
- Market analysis and forecast
- The shift from benchmark to spot pricing
The iron ore derivative market: Index methodology and market structure
- The different indices in the iron ore market: specifications and methodology
- What is a financial swap and how does it work?
- Example of the typical swap contract
- Settlement price
- Specific of financial swaps versus physical futures
- Trading volumes of iron ore derivatives and forecast
- Market structure: principals, brokers, exchanges
The iron ore derivative market: Index methodology and market structure
Using iron ore derivatives for risk management
- The use of iron ore derivatives to manage physical risk
- Deal example for suppliers, end-users, and traders
- Intra commodity arbitrage: implied freight, arbitrage
- Inter commodity arbitrage: red hot spreads
Understanding risk management indicators
- Volatility, correlation, delta, value-at-risk, and other risk measures
- Easy and useful ways to calculate these indicators
- Avoiding the false sense of security they can provide
- Introduction to more sophisticated risk management systems
What do traders and brokers do?
Over-the-counter trading mechanisms
- Step by step worked example of a derivatives deal
- Trader’s day-to-day activity
- Typical deal flow and implications at a company level
- Required infrastructure to support trading activities
- Different ways to trade iron ore derivatives: over-the-counter or through exchanges
Structured deals with iron ore derivatives
- Example of structured deals offered by banks to physical and financial participants in the iron ore market
- How derivatives can help to secure investments?
- Beyond swaps: options & collars
- Project finance
- Pre-paid forwards
Trading on exchange and clearing another way to mitigate credit risk
- What is trading on exchange and clearing?
- What is clearing?
- Clearing mechanisms
- Implications for market participants: Mark-to-market, initial margins, daily margins, cash flows
- Interactive examples
Setting up a derivatives desk and wrap-up
- Typical trading floor organization and business models
- Departments responsibilities and inter-connections: front office, risk management, back-office, credit, legal
- Risk analysis and strategy implementation
- Requirements to set up and develop a trading activity
- Critical issues to consider and mistakes to avoid
- Course wrap up and next steps