Glossary of Terms for Trading Reports

We always try to be as transparent in our reporting as possible, but sometimes we do use industry terms to describe things that are happening in the market. There isn’t really any way around this, so we’ve laid out the terms we use regularly in a way that’s easy for you to understand.

  1. Baseload - Delivery of the same amount of electricity in each half hour period of each day in the contract

  2. Bearish - where market conditions suggest prices are going to fall (Negative sentiment)

  3. Bullish - where market conditions suggest prices are going to rise (positive sentiment)

  4. Closing price - the previous (time period) final trading price

  5. Commodities - in relation to energy this includes natural gas, electricity, crude oil, coal and carbon

  6. Curve - seasonal contracts (eg. Summer 2019 onwards)

  7. Front [Month/Season] - the next [Month/Season] that is still tradable (ie. before the delivery period has started.)

  8. Hedge - a purchase of energy to reduce exposure

  9. Market Fundamentals - factors that drive the sentiment of the market: demand, costs, outages, supply etc…

  10. Peak - delivery of the same amount of electricity in each half hour period between the times of 07:00 - 19:00 on each weekday in the delivery period

  11. PMI - a monthly report from private sector companies that reflect the makeup of the business sector to show economic growth and stability within business

  12. Pressure - a downward force on a commodity or value

  13. Prompt - delivery within the month for gas or electricity

  14. Spot price - within (same) day contracts

  15. Support - an upward force on a commodity or value

  16. UK NBP - UK National Balancing Point, used as a delivery point for gas traded. For accounting and balancing purposes, all gas is said to flow through this point

  17. Brent crude oil - sourced in the North Sea, known as sweet due to its reduced amounts of hydrogen sulphide and carbon dioxide and known as light due to its high API gravity allowing it to flow easier; 2/3rd of oil trade deals are made based on the price of Brent crude oil

  18. WTI crude oil - sourced in the U.S., it is lighter and sweeter than Brent crude oil.

Any other vocabulary we use that you don’t understand? Send an email to hello@amberenergy.net and we’ll add it to this list.

Joe Hickman