Saturday, 26 November 2022, 9:11 AM
Site: Dark Energy Consulting
Course: Free Simple Glossary of Energy Trading terms (Simple Glossary)
Glossary: Free Simple Glossary of Energy Trading terms
M
nick

Maturity

by Nick Henfrey - Saturday, 9 May 2015, 7:14 AM
 

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

nick

Megawatt

by Nick Henfrey - Saturday, 9 May 2015, 7:14 AM
 

A Megawatt is a measure of energy per unit time

  • in this case one million joules per second
  • one watt being one joule per second

Abbreviation is MW

Not to be confused with MWh

For much more information please refer to the Detailed Glossary

nick

Megawatt hour

by Nick Henfrey - Saturday, 9 May 2015, 7:14 AM
 

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

N
nick

Netting

by Nick Henfrey - Saturday, 9 May 2015, 7:14 AM
 

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

nick

Nomination

by Nick Henfrey - Saturday, 9 May 2015, 7:14 AM
 

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

nick

Novation

by Nick Henfrey - Saturday, 9 May 2015, 7:14 AM
 

A generic legal term for transferring existing contracts from one legal entity to another

For much more information please refer to the Detailed Glossary

O
nick

Offer

by Nick Henfrey - Saturday, 9 May 2015, 7:14 AM
 

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

nick

Option

by Nick Henfrey - Saturday, 9 May 2015, 7:14 AM
 
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

nick

Order

by Nick Henfrey - Saturday, 9 May 2015, 7:14 AM
 

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

nick

Origination

by Nick Henfrey - Saturday, 9 May 2015, 7:14 AM
 

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