Free Simple Glossary of Energy Trading terms

Trading and pricing for delivery the next day

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Physically settled trades have a delivery time or period specified in the terms (details) of the trade

Delivery is the physical act of delivery of the traded commodity at the location and time specified in the trade details

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At its simplest the delta of a trade or position is the ratio of its change in value to the change in value of its underlier 

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To offset the delta of an option or other non-linear trade, usually with a linear derivatives position

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A type of trade or instrument which has a value dependent on an observable value, which is usually, but not always, the price of a physical commodity.

The observable value is called the underlier

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Calculation of the present day value of a cash flow that will or might occur at some time in the future

For much more information please refer to the Detailed Glossary