Offer | ||
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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 | ||
Option | ||
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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 | ||
Order | ||
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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 | ||
Origination | ||
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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 | ||
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 | ||