Electricity and gas - as well as other energy commodities used in the generation of electricity - can be bought, sold and traded upon markets or exchanges via bids to buy, offers to sell, short-term trades and financial instruments such as futures, forward contracts and derivatives.
Each objective - immediate need, future price protection, risk mitigation - has associated energy trading strategies.
Typically energy trading consists of:
An important component of energy trading strategy is risk management via rights, call and put options, which are designed to transfer financial risk between participants.
The Energy & Commodity Trading data model provides an integrated data architecture that supports the trading and analytic requirements of energy trading organizations.
|Trading Book||Forward Contract|
|Trade Order||Repurchase Agreement|
|Financial Product / Commodity||Shipping/Transmission Capacity|
The Energy & Commodity Trading model can be seamlessly integrated with ADRM's Oil Sands Mining, Upstream, Midstream, Petroleum Refining and/or Oil & Gas Downstream data models, with our Gas & Electric Utility industry data models, and with many of our financial industry models such as Commercial Banking and Corporate Investment Banking.