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Top 4 Responsibilities of Energy Traders

Energy traders, also known as power traders, are people who work for energy companies. Energy traders can engages in two primary kinds of trading: trading financial products and trading physical commodities.

How energy traders work is very similar to how traders work on the NYSE; making phone calls, analyzing the market, being supplied with mathematical information, and engaging in energy trade risk management.

Commodity trading

Energy trading can be very stressful, but on the bright side the rewards are also very good to those who work hard at it.

Here are the top four responsibilities of energy traders:

1. Buy and Sell Energy Shares

First and foremost, the primary responsibility of an energy trader is to purchase and then sell shares of energy at any given price in order to make a profit. This energy can come in a number of different forms, including electricity shares, natural gas, and petroleum.

Energy traders will utilize software programs and analytical tools to determine how energy prices are headed and when the appropriate times are to buy and sell. This leads us into our next responsibility, which is…

2. Predict Upcoming Energy Prices

The only way you can possibly be successful at energy trading is to accurately predict upcoming energy prices. Traders will constantly update their spreadsheets filled with financial data in order to make the most accurate predictions possible. In the case of larger firms, the energy trader may have an assistant handle the paperwork and formulas to keep them informed.

Energy trading

3. Making Quick Decisions

As noted above, the daily life of an energy trader can be stressful, and success in this business will require you to make quick decisions and consistently work well while under pressure. It’s critical that you possess solid communication skills and are able to work with others on a team, while also being able to handle ten to twelve hours shifts each work day.

4. Learning The Business

One can’t simply be in an entirely different career one day and then become an energy trader the next. Success as an energy trader will require you to know this business inside and out. Education, and specifically a bachelor’s degree, in finance or business will be much preferred. In addition, you will also need to possess some level of knowledge on geology, meteorology, and engineering.

One benefit to becoming an energy trader over other kinds of stockbroking is that a certification or license is not needed for you to become one. However, it is likely that you will need at least to have a college degree in order to win an energy trading position.

Energy Trader Responsibilities

All in all these are the primary four responsibilities that energy traders have to handle on a day-to-day basis, and thus the responsibilities that you can expect to have should you pursue a career in energy trading.

About author

Ivan Widjaya
Ivan Widjaya 2594 posts

Ivan Widjaya is the Owner/Editor of Noobpreneur.com, as well as several other blogs. He is a business blogger, web publisher and content marketer for SMEs.

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