Will Mathis, Bloomberg, writes about a trader’s long term experience in the EU’s emissions market, here… I especially liked the Risk Don’t (apologies for stealing from Glamour’s do’s and don’t’ s feature)…
“On the morning of April 26, the carbon price plummeted, and over the course of the day Ek worked furiously to liquidate his entire position. By the end of the day, he’d lost about €12 million and slashed his profit for the year by a third. At one point he dragged a trash can over to his desk in case he got sick. He told his analyst, who’d turned pale after being screamed at by Ek all morning, to go home.
“As a trader, you remember those days,” Ek says. “The tough part was maybe only four hours. But I used more energy in those four hours than in a month of normal trading.”
When it was over, Ek called up his boss, Brian Hunter. “I’m still up for the year, so don’t fire me,” he recalls telling Hunter. “He didn’t care. He said, ‘If you want to double up the position, I’m behind you.’ ””