OTC | ||
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OTC - Over-The-Counter Generally used to refer to any trade not executed with an Exchange For much more information please refer to the Detailed Glossary |
P&L | ||
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Profit and Loss (P&L) is a finance and risk reporting term to describe the profitability of an individual trade, a book, a desk, or a company. Whilst the P&L of a company includes all activity, and costs (offices, staff etc.) the trading P&L is a measure of the profitability of a single, or a set of, trade(s) For much more information please refer to the Detailed Glossary |
P&L atttribution | ||
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Let's say we added up the P&L of all our trades today, and then did the same tomorrow - the two values would probably be different - but why? Some reasons:
P&L attribution calculates the change in P&L for each of the above individually - and any other factors - so that the effect of each cause may be understood For much more information please refer to the Detailed Glossary |
Party | ||
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A party is an organization, or part of an organization, which is legally involved in a trade For much more information please refer to the Detailed Glossary |
Physical | ||
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The attribute, or adjective, physical usually refers to trades and business process that results or involves in the physical delivery of energy or a commodity For much more information please refer to the Detailed Glossary |
Portfolio | ||
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A group of trades For much more information please refer to the Detailed Glossary |
Position | ||
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All physically settled derivatives imply either an obligation to deliver, or take delivery of, a commodity at a location at some time in the future The obligation to deliver a commodity is called a short position of that commodity at that location and time in the future The obligation to take delivery of a commodity is called a long position of that commodity at that location and time in the future For much more information please refer to the Detailed Glossary |
Position Reporting | ||
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Traders make, and lose, money by taking positions, either short or long at various points in the future Open positions in the future imply a risk that needs to be managed very carefully as changes in the forward curves affect the value of the net open position It is therefore critical that traders know their up to date position at all times This is the purpose of Position Reporting by means of Position Reports For much more information please refer to the Detailed Glossary |
Power | ||
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In Energy Trading terms Power is almost always synonymous with Electricity In physics terms power is a measure of the rate of energy conversion per unit time For much more information please refer to the Detailed Glossary |
Product | ||
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In Energy trading a Product is a standardized type of trade which may be offered by an Exchange, quoted by a Broker, or be the subject of a published Index For much more information please refer to the Detailed Glossary |