Dark Energy Consulting
Current course
Free Simple Glossary of Energy Trading terms
For more detailed explanations try the Detailed Glossary
All categories |
TRADING |
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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 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 | ||
ETRM | ||
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Energy Trading and Risk Management - usually referring to a computer system that allows trades to be electronically recorded, and risk measures to be calculated For much more information please refer to the Detailed Glossary | ||
Exchange | ||
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An Exchange is a trading organization which matches bids and offers on standardized contracts to form trades. Unlike a Broker the Exchange acts as the counterparty for the trades, and trading is anonymous For much more information please refer to the Detailed Glossary | ||
Execution | ||
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In trading terms execution is the act that makes a trade a legally binding contract between the trading parties For much more information please refer to the Detailed Glossary | ||
Floating | ||
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A financial side or leg of a trade that is not fixed in advance, but is dependent on the value of some observable (usually an index) at a pre-agreed time related to the delivery date For much more information please refer to the Detailed Glossary | ||
Front Month | ||
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The earliest tradable month of a particular contract - normally a Futures contract For much more information please refer to the Detailed Glossary | ||
Give Up | ||
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A give up is an OTC trade - usually a forward - given up to an Exchange for clearing For much more information please refer to the Detailed Glossary | ||
Hedge | ||
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To hedge is to offset, mitigate or reduce a risk or risks of an organization or individual by entering into contracts or trades A hedge is a trade or contract intended at least partly to reduce risk In Energy Trading the risk is usually market risk associated with other trades or contracts, or the operation of assets For much more information please refer to the Detailed Glossary | ||