How To Become An Energy Derivatives Trader: What It Is and Career Path

What is an energy derivatives trader and how to become one

Updated January 8, 2025

3 min read

An energy derivatives trader is a financial investment professional who specializes in working with energy derivatives such as crude oil.

They typically work as an employee of an investment firm, and their responsibilities include analyzing the financial needs of the client and building a portfolio of investment options using energy derivatives.

An energy derivatives trader needs to understand financial trading data as well as market trends so that they can assist their clients with making the right trading and investment choices to meet their goals. This means having high analytic skills and being very detail-oriented.

Additional key responsibilities for a derivatives trader include using daily research and analysis to determine optimal short and long-term trade options in commodity markets and executing consistent and reliable risk management.

The qualifications to become an energy derivatives trader include a minimum of a bachelor's degree, preferably in areas like finance, economics, or statistics. Most firms also prefer their traders to have at least one year of experience in the trading industry, so you may have to get an internship or a more entry-level role to start with.

Professional certifications from the New York Institute of Finance or a similar organization can help to demonstrate your skills and set you apart from the competition.

ScoreEnergy Derivatives TraderUS Average

Salary

8.1

Avg. Salary $117,470

Avg. Salary $59,228

Stability level

9.5

Growth rate 10%

Growth rate 0.3%

Diversity

6.1

Race

American Indian and Alaska Native 0.21%

Asian 12.29%

Black or African American 5.48%

Hispanic or Latino 11.37%

Unknown 4.12%

White 66.52%

Gender

female 7.44%

male 92.56%

Age - 43

Race

American Indian and Alaska Native 3.00%

Asian 7.00%

Black or African American 14.00%

Hispanic or Latino 19.00%

White 57.00%

Gender

female 47.00%

male 53.00%

Age - 43

Stress level

9.5

Stress level is very high

7.1 - high

Complexity level

10.0

Complexity level is advanced

7 - challenging

Work life balance

3.5

Work life balance is poor

6.4 - fair

Key steps to become an energy derivatives trader

Explore energy derivatives trader education requirements

Most common energy derivatives trader degrees

Bachelor's

78.9 %

Master's

19.5 %

Associate

0.8 %

Start to develop specific energy derivatives trader skills

Skills	Percentages
Derivative	21.84%
Futures Contracts	7.27%
Interest Rates	4.99%
P/L	4.59%
Fixed Income	4.30%

Research energy derivatives trader duties and responsibilities

Lead a team of four traders and two assistant traders in the CME silver options market.
Manage broking and trading teams, expanding customer base and successfully trading IPE and NYMEX energy option contracts.
Trade equity index futures and identify arbitrage opportunities in relate securities.
Full time investor primarily in equities, futures and their derivatives.

Get energy derivatives trader experience

Prepare your energy derivatives trader resume

When your background is strong enough, you can start writing your energy derivatives trader resume.

You can use Zippia's AI resume builder to make the resume writing process easier while also making sure that you include key information that hiring managers expect to see on an energy derivatives trader resume. You'll find resume tips and examples of skills, responsibilities, and summaries, all provided by Zippi, your career sidekick.

Choose from 10+ customizable energy derivatives trader resume templates

Build a professional energy derivatives trader resume in minutes. Browse through our resume examples to identify the best way to word your resume. Then choose from 10+ resume templates to create your energy derivatives trader resume.