Dark Energy Consulting
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Free Simple Glossary of Energy Trading terms
For more detailed explanations try the Detailed Glossary
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Currently sorted First name ascending Sort by: Surname | First name
Close out | ||
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Flattening an open position to a net zero (or flat) position For much more information please refer to the Detailed Glossary | ||
Commodity | ||
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In Energy Trading a commodity is generally either a form of energy itself, or a physical material that may be used to easily provide energy, or a related commodity or service. The most common commodities are oil, gas, electricity (power) and coal For much more information please refer to the Detailed Glossary | ||
Confirmation | ||
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A Confirmation is a document describing a trade that has been executed, and is generally sent by the Seller to the Buyer to check the trade details, to be returned by the Buyer confirming that the trade details match the trade as they have recorded it The Confirmation, or Confirm, process allows both parties to agree the trade details For much more information please refer to the Detailed Glossary | ||
Curve | ||
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Curve is a relatively general term to describe a set of time series data, for example prices, interest rates, foreign exchange rates (FX), volatilities etc. For much more information please refer to the Detailed Glossary | ||
Day Ahead | ||
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Trading and pricing for delivery the next day For much more information please refer to the Detailed Glossary | ||
Delivery | ||
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Physically settled trades have a delivery time or period specified in the terms (details) of the trade Delivery is the physical act of delivery of the traded commodity at the location and time specified in the trade details For much more information please refer to the Detailed Glossary | ||
Delta | ||
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At its simplest the delta of a trade or position is the ratio of its change in value to the change in value of its underlier For much more information please refer to the Detailed Glossary | ||
Delta Hedge | ||
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To offset the delta of an option or other non-linear trade, usually with a linear derivatives position For much more information please refer to the Detailed Glossary | ||
Derivative | ||
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A type of trade or instrument which has a value dependent on an observable value, which is usually, but not always, the price of a physical commodity. The observable value is called the underlier For much more information please refer to the Detailed Glossary | ||
Discounting | ||
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Calculation of the present day value of a cash flow that will or might occur at some time in the future For much more information please refer to the Detailed Glossary | ||