Sunday, 21 April 2024, 4:21 PM
Site: Dark Energy Consulting
Course: Free Simple Glossary of Energy Trading terms (Simple Glossary)
Glossary: Free Simple Glossary of Energy Trading terms
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nick

Take or Pay

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

A type of supply contract in which the buyer commits to buying a minimum quantity of some product, or to make an alternative payment for the amount below the minimum quantity

Take or Pay contracts are widely used in the Gas and Oil markets

For much more information please refer to the Detailed Glossary

nick

Terminal

by Nick Henfrey - Friday, 5 June 2015, 8:28 AM
 

Usually used in the context of Natural Gas - an entry or exit point into a regional gas network or National Transmission System

For much more information please refer to theĀ Detailed Glossary

nick

Theta

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

The value of options varies with time, in general the uncertainty in the price of the underlier reduces as the moment of exercise approaches. Theta is the measure of how much the value of a trade, or set of trades, varies with time

For much more information please refer to the Detailed Glossary

nick

Tolling Agreement

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

A general term used to describe an agreement in which one party (the toller) provides an input product to the other party, and the other party provides another product (usually derived from the input product) in return

For much more information please refer to the Detailed Glossary

nick

Trade

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

A trade is a legally binding contract between two parties

A physically settled trade requires one party to deliver one or more commodities to the other party at a time and location specified in the trade terms, in return for one or more cash payments

A financially settled trade requires both parties to agree the value of one or more underliers, and make one or more cash payments dependent on those values

For much more information please refer to the Detailed Glossary

nick

Trading at Settlement

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

A type of Futures contract that is physically delivered and settled at the exchange closing price of the contract

For much more information please refer to the Detailed Glossary