Relation between short-term and long-term contracts on the electricity markets in Europe
Usually, long-term prices on the power exchanges are on average higher compared to the short-term ones. It is possible to exploit this pattern when developing power market related trading strategies. Furthermore, if there is a way to establish situations in which premiums of forward and futures pric...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | srp |
| Published: |
University Business Academy - Faculty of Economics and Engineering Management, Novi Sad, Serbia
2019-01-01
|
| Series: | Ekonomija: teorija i praksa |
| Subjects: | |
| Online Access: | https://scindeks-clanci.ceon.rs/data/pdf/2217-5458/2019/2217-54581901001D.pdf |
| Summary: | Usually, long-term prices on the power exchanges are on average higher compared to the short-term ones. It is possible to exploit this pattern when developing power market related trading strategies. Furthermore, if there is a way to establish situations in which premiums of forward and futures prices over spots are higher than usual, some revenue increasing possibilities for the market players are available. These issues are analyzed in this article on the example of Czech & Slovak, German and Nordic electricity markets. Specific recommendations are also provided to the parties who trade on the electricity exchanges. |
|---|---|
| ISSN: | 2217-5458 2620-0228 |