Detailed Glossary

A Detailed Glossary of Energy Trading terms for registered users

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Balance of Month

by Nick Henfrey - Thursday, 19 March 2015, 7:22 AM

A type of contract in which the delivery period is the remainder of the current month


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



by Nick Henfrey - Wednesday, 29 October 2014, 7:52 AM

Term used in power (electricity) trading and operations to describe continuous delivery (24 hours a day, 365 days a year)


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

Picture of System Administrator


by System Administrator - Thursday, 19 March 2015, 7:24 AM

A set of indices used to price a trade


Generally used in the description of a floating side of a trade, such as a Floating Forward or Swap

The valuation of the floating side is based on an agreed formula based on multiple indices; the set of indices being the basket



by Nick Henfrey - Thursday, 19 March 2015, 7:24 AM

A Bid is a type of Order; a trader bids to buy a product or commodity at the Bid price


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




by Nick Henfrey - Thursday, 19 March 2015, 7:25 AM

A Blotter is a traditional term for a form on which trade details are recorded by a trader as trades are executed


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




by Nick Henfrey - Wednesday, 5 December 2012, 5:47 PM

A book is a collection of trades, usually grouped by a trading strategy


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



by Nick Henfrey - Wednesday, 22 January 2014, 5:45 PM
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
The trade is legally executed between the respective parties
There are three types of brokers commonly involved in energy trading:
  • Execution Brokers - usually operating an electronic platform - brokering OTC trades
  • Exchange Brokers - Act as broker for trading companies on Exchanges on which the trading organization is not a full member
  • Clearing Brokers - Clear trades executed on an Exchange on behalf of the trading organization
Generally all brokers charge a fee, usually based on the total volume of the trade