Products and Markets

Felix Müsgens () and Alexander Bade ()
Additional contact information
Felix Müsgens: Brandenburg University of Technology Cottbus-Senftenberg
Alexander Bade: Albstadt-Sigmaringen University of Applied Sciences

Chapter Chapter 2 in Energy Trading and Risk Management, 2024, pp 9-34 from Springer

Abstract: Abstract Energy commodities are traded on several different markets. These markets vary by time horizon between purchase and delivery (e.g. year-ahead, month-ahead or day-ahead), organisation of market (e.g. auction or continuous trading, power exchange or broker platform), traded commodity (e.g. electricity or gas), and type of financial contract (e.g. forward, future or option). The chapter introduces the two vital time dimensions of energy trading, namely the delivery period and the trading period first. Regarding the delivery period, trading on day-ahead markets takes place shortly before delivery and can be differentiated from delivery periods further in the future. In the day-ahead market, participants have significant knowledge about various factors on the supply side and the demand side as well as their own open position. Traded volumes on day-ahead markets are high in Europe, both for electricity and natural gas. Hence, we start the description of markets with day-ahead markets, covering both electricity and natural gas. Then, we discuss the longer time horizon and continuous trading of long-term products, before differentiating different traded products. Lastly, we introduce the vital concept of liquidity and conclude the chapter with a brief discussion of the three key factors motivating energy trading.

Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-57238-8_2

Ordering information: This item can be ordered from
http://www.springer.com/9783031572388

DOI: 10.1007/978-3-031-57238-8_2

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().