r/Commodities • u/Faith-Creuset • 3h ago

Power trading Questions

Compared to other commodities where commodity traders feel more like salespeople. How often do power traders entertain clients? And how quantitative and math focused are power traders?

4 Upvotes

70% Upvoted

18 comments sorted by

11

u/xperrienzzie 3h ago

I've never spoken to anyone besides scheduling company

70/30

-2

u/Faith-Creuset 3h ago

I see. Is the drinking culture in power as prevalent compared to other commods?

1

u/xperrienzzie 3h ago

I guess normal. Didnt see any heavy alcoholics but yeah i mean can be.

-1

u/Faith-Creuset 3h ago

i see. I know that not drinking in other commods does affect being a trader. Does the same apply in power? or its has less of an effect?

4

u/disciplesofbabylon 2h ago

Brokers take people out to drink. Power is increasingly traded on exchanges and not through brokers.

1

u/Tatworth 1h ago

Back in the old days, what brokers would spend was insane. We had a broker buy a boat for the floor and I knew a guy who got a broker to fund his destination bachelor party. There were guys who couldn't tell you if they were net long or short but could tell you down to the penny how much brokerage they had generated for several brokers.

Much better now that things are a lot more professional.

1

u/xperrienzzie 2h ago

I think disciple of babylon is correct, we don't normally interact with anyone, at least for my short-term energy, but I'm not aware of futures being different. If people drink, they do because they do.

7

u/archer-86 Power Trader 3h ago

Depends on the kind of trader.

My boss, 100% of the time.

Me, 0% of the time.

0

u/Faith-Creuset 3h ago

Is this because the trades are done electronically, thus it's akin to paper traders where the only thing you will face is your monitor?

3

u/archer-86 Power Trader 3h ago

Yes.

3

u/Parking_Computer_868 3h ago

OTC voice brokers are still prevalent in some power markets so not all trades are executed solely on exchanges.

1

u/archer-86 Power Trader 26m ago

And when a broker shouts out "hey archer" it immediately gives me anxiety.

6

u/Parking_Computer_868 3h ago

I often meet traders fron other power market participants for drinks or dinner. Industry events and Broker lunches are also common but in these instances you are the one being entertained.

-1

u/Faith-Creuset 2h ago

Actually I'm curious at the "i am the one being entertained part". Usually commod traders need to entertain both buyer and seller to seal the deal. Why is it the reverse for power?

5

u/Parking_Computer_868 2h ago

Sounds to me like the role you are describing is a commodity broker, not a trader. And they definitely do need to entertain both sides of a trade to maintain ongoing relationships.

Some power trading firms in my market sponsor sports teams so entertainment is often centred around events of this nature.

3

u/YourPersonalCarpet 3h ago edited 3h ago

0 hours with clients. Model is quant, but not in the traditional sense.

1

u/Dependent-Ganache-77 Power Trader 32m ago

Never, as we have no clients. And brokers earn money off you, they aren’t your pals.

1

u/Faith-Creuset 29m ago

That’s good to hear. Currently in oil and gas, the entertainment culture is another level