Interconnector | ||
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A gas or power connection between two different locations Usually used to flow gas or power from a lower priced location to a higher priced location For much more information please refer to the Detailed Glossary |
Invoicing | ||
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Like most businesses, we sell something, we deliver it, we raise an invoice, we send it to our buyer, we get paid - we hope. The Master Agreement between us and our counterparty will specify if we raise an invoice for a specific delivery (of oil for example), or for a continuously delivered commodity (gas or power for example) over a period (usually a day, week or month) For much more information please refer to the Detailed Glossary |
Line Loss | ||
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When transmitting Electricity via Interconnector, some of the power is lost and that's called Line Loss. For UK-FR interconnector line loss factor is 1.17% For much more information please refer to the Detailed Glossary |
Linear trade | ||
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A trade with no optionality For much more information please refer to the Detailed Glossary |
Location | ||
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Location is one of the key dimensional attributes of all physically settled, and many financially settled, trades For much more information please refer to the Detailed Glossary |
Margining | ||
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Margining is a form of Settlement, whereby exposure to Credit Risk between two parties is limited by keeping the overall Credit Exposure below a certain threshold by means of Margin payments between the parties whenever the threshold is breached For much more information please refer to the Detailed Glossary |
Mark to Market | ||
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A way of valuing the unrealized P&L of a simple linear Forward, Futures contract or Swap For much more information please refer to the Detailed Glossary |
Market | ||
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In Energy Trading a Market describes a standardized trading environment for a commodity and a geographic zone The geographic zone is not necessarily the delivery location, but usually determines the valuation of the traded commodity For example API#2 is a market based on the published index for coal in the Amsterdam, Rotterdam and Antwerp (ARA) location; a trade may deliver coal to a port in France but still be part of the API#2 market For much more information please refer to the Detailed Glossary |
Market Maker | ||
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A market maker quotes prices at which they are prepared to buy or sell a commodity - usually on an Exchange or with a broker For much more information please refer to the Detailed Glossary |
Master Agreement | ||
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When two parties execute a trade between themselves they specify the terms of the trade: Price, Volume, Location, timing etc. But in order to successfully manage the trade's delivery and settlement a lot more information needs to be available than is captured in the trade details, such as when payment is due, who needs to notify a TSO etc. This additional detail is held in a Master Agreement Each trade that is executed is regulated by a Master Agreement For much more information please refer to the Detailed Glossary |