Dark Energy Consulting
Current course
Participants
General
Detailed Glossary
Detailed Glossary
Browse the glossary using this index
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | ALL
B |
|---|
Balance of Month | ||
|---|---|---|
A type of contract in which the delivery period is the remainder of the current month Detail Widely used in gas trading a Balance of Month contract (BoM) can vary from 30 days down to a few days depending on the day traded Balance of Month contracts often have separate contract codes and settlement prices for each day of the month that they are traded | ||
Baseload | ||
|---|---|---|
Term used in power (electricity) trading and operations to describe continuous delivery (24 hours a day, 365 days a year) Detail Baseload is the most basic type of power profile Baseload may refer to generation - nuclear power plants provide excellent baseload generation - but cannot easily be switched on or off so are no use for other profiles Baseload may refer to trading - a contract for delivery in 2024 may usually traded as Baseload, Peak or Offpeak Peak and offpeak are related profiles that (as their names suggest) deliver during the set of hours that are defined as peak (e.g. 07:00 - 19:00) or offpeak (e.g. 19:00 - 07:00 the next day) in general Baseload = Peak + Offpeak which is to say if we sell the same volume Peak and Offpeak for the same period then we have effectively sold Baseload If we buy Baseload and sell Offpeak, then we have effectively bought Peak | ||
Basket | ||
|---|---|---|
Bid | ||
|---|---|---|
A Bid is a type of Order; a trader bids to buy a product or commodity at the Bid price Detail The trader bids to buy a product at a particular price Bids are normally submitted to a Broker or an Exchange If a bid is matched by a subsequent offer by another party, then a trade is executed If the bid matches an already quoted offer then a match is made and a trade is executed See also Offer
| ||
Blotter | ||
|---|---|---|
A Blotter is a traditional term for a form on which trade details are recorded by a trader as trades are executed Detail Original blotters were pre-printed forms with a row for each trade, in which the trader wrote by hand the trade details in defined columns Traders often use a spreadsheet to capture trade details as a form of electronic blotter Trade details from blotters are either subsequently re-keyed into a trade record system (ETRM), or may be electronically uploaded into an ETRM Many ETRMs have trade blotters built into them to allow trades to be recorded directly as they are executed Deal ticket is a similar term for a pre-printed form on which trade details are recorded. Typically a blotter allows one trade per line to be recorded, whereas a deal ticket - designed for more complex trades - usually has one trade per page
| ||
Book | ||
|---|---|---|
A book is a collection of trades, usually grouped by a trading strategy Detail Note the similarity to a portfolio, the two terms are often used interchangeably, and sometimes together, in which case a book is usually a grouping of portfolios | ||
Broker | ||
|---|---|---|
A broker acts as an intermediary in the trading process
Most energy execution brokers operate a trading platform, that allow Orders to be submitted on a variety of standardized trading Products or Instruments.
When Orders are matched then a trade is executed, and the parties making the matched Bid and Offer are each notified that a trade has been executed.
Detail
There are three types of brokers commonly involved in energy trading:
| ||