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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Fee | ||
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A fee is a cash payment which may be associated with:
For much more information please refer to the Detailed Glossary | ||
General Ledger | ||
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A record of all financial transactions made by the company For much more information please refer to the Detailed Glossary | ||
Carbon | ||
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Gas, oil and coal all contain carbon - when they burn the carbon is oxidized to carbon dioxide. Carbon dioxide, as we all know, enters the atmosphere, and is generally believed to cause global warming There are various schemes to reduce the emission of carbon dioxide, called emissions schemes, and these require major emitters of carbon dioxide to provide certificates matching their emission of carbon dioxide. These certificates may be acquired in a number of ways, and there is a market for organizations with surplus certificates to sell, and organizations who need more certificates, to buy For much more information please refer to the Detailed Glossary | ||
Energy | ||
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The unhelpful sounding physics definition: Energy is the capacity of a physical system to perform work We know energy: light, heat, electricity, kinetic (motional) energy, potential (the energy something gets when we lift it up) energy etc. For much more information please refer to the Detailed Glossary | ||
Theta | ||
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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 | ||
Realization | ||
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The p&l of trades (and cash flows) is described as:
For much more information please refer to the Detailed Glossary | ||
Mark to Market | ||
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A way of valuing the unrealized P&L of a simple linear Forward, Futures contract or Swap For much more information please refer to the Detailed Glossary | ||
Cash Flow | ||
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A payment that has been, or will need to be paid, on a particular date For much more information please refer to the Detailed Glossary | ||
Greek | ||
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The Greeks are a set of Market Risk measures, using Greek (or Greek-like) letters to measure sensitivities of a trade or portfolio to the set of factors that affect the value of the trade or portfolio For much more information please refer to the Detailed Glossary | ||
Gamma | ||
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Gamma is one of the market risk Greeks It measures the sensitivity of the Delta to an underlier or market value It is of use when the value of the Delta itself varies with the value of the underlier - the Delta being the ratio of the value of the trade or portfolio to the value of an underlier or market value For much more information please refer to the Detailed Glossary | ||