Maturity | ||
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Generally a financial trading term used sometimes in the commodities trading market to mean the expiry or expiration date - particularly futures contracts For much more information please refer to the Detailed Glossary | ||
Megawatt | ||
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A Megawatt is a measure of energy per unit time
Abbreviation is MW Not to be confused with MWh For much more information please refer to the Detailed Glossary | ||
Megawatt hour | ||
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A measure of energy - abbreviated to MWh Equivalent to one Megawatt of power flowing for one hour For much more information please refer to the Detailed Glossary | ||
Netting | ||
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Netting is the aggregating and offsetting of multiple cash flows between counterparties to arrive at one, or a limited set of physical payments For much more information please refer to the Detailed Glossary | ||
Nomination | ||
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An electronic message sent to a third party detailing a transaction or requirement as part of a pre-existing agreement Typically gas and power transactions are nominated to system and market operators For much more information please refer to the Detailed Glossary | ||
Novation | ||
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A generic legal term for transferring existing contracts from one legal entity to another For much more information please refer to the Detailed Glossary | ||
Offer | ||
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An Offer is a type of Order; a trader offers to sell a product or commodity at the Offer price For much more information please refer to the Detailed Glossary | ||
Option | ||
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At its simplest an energy option is an instrument that gives the buyer the right, but not the obligation, to buy, or to sell, a commodity at a specified price at some point in the future.
More complex options may be financially settled, the payout being dependent on some condition(s) being met, and varying with some observable value(s) at the time of exercise
There is usually a single non-refundable payment made by the buyer of the option (the holder) to the seller of the option (the writer) - this is the option premium
For much more information please refer to the Detailed Glossary | ||
Order | ||
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An Order is an instruction sent to an Exchange or a Broker to execute a trade unconditionally, or when or if specific criteria are met For much more information please refer to the Detailed Glossary | ||
Origination | ||
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Origination - the negotiation and conclusion of bespoke contracts, and structuring of non-standard products to offer for sale For much more information please refer to the Detailed Glossary | ||