Free Simple Glossary of Energy Trading terms

An Index is a set of prices that are published for a commodity or product, usually derived from trading data, using an open and independent method

For much more information please refer to the Detailed Glossary

A type of Forward contract that is physically delivered and settled at a price derived from a published index

For much more information please refer to the Detailed Glossary

Term used to describe transferring natural gas from a transmission network into a storage facility

For much more information please refer to the Detailed Glossary

At its most abstract an Instrument is a category of trade types

For much more information please refer to the Detailed Glossary

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

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