Serving the Quantitative Finance Community
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- kwoksun2000
- Posts: 2
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Electricity Trading
Can anyone recommend good resources to learn about electricity trading in the US?
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- Beachcomber
- Posts: 2
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Re: Electricity Trading
This is a pretty broad question. There are several types of markets - forward, virtual, FTR, etc. as well as several different ISOs that have their own rules for trading. Each ISO has a manual that details the trading rules for their markets. This is probably a pretty good place to start. In addition, Eydeland and Wolyniek have a book that is primarily a risk management book but is a good market primer. Vince Kaminski has several excellent books on the electricity market as well.
I can't really give much more help until you are more specific.
Beachcomber
I can't really give much more help until you are more specific.
Beachcomber
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- kwoksun2000
- Posts: 2
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Re: Electricity Trading
Thank you. The Eydeland and Wolyniec book looks like a good source of information.
I would like to know more about common trading strategies involving exchange traded electricity contracts. i.e. Do people trade: hubs against each other, electricity vs. natural gas and coal?
I would like to know more about common trading strategies involving exchange traded electricity contracts. i.e. Do people trade: hubs against each other, electricity vs. natural gas and coal?
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- Beachcomber
- Posts: 2
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Re: Electricity Trading
Hi,
Trading hubs against one another (many points actually) is what FTR trading is about. Trading against natural gas is a heat rate spread. I don't want to go into specifics on trading strategies, but, in general, the most important thing to make sure of is liquidity for the trade you are considering.
Trading hubs against one another (many points actually) is what FTR trading is about. Trading against natural gas is a heat rate spread. I don't want to go into specifics on trading strategies, but, in general, the most important thing to make sure of is liquidity for the trade you are considering.