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Electricity price forecasting (EPF) is a branch of energy forecasting which focuses on using mathematical, statistical and machine learning models to predict electricity prices in the future. Over the last 30 years electricity price forecasts have become a fundamental input to energy companies’ decision-making mechanisms at the corporate level.
Spot contract. In finance, a spot contract, spot transaction, or simply spot, is a contract of buying or selling a commodity, security or currency for immediate settlement (payment and delivery) on the spot date, which is normally two business days after the trade date. The settlement price (or rate) is called spot price (or spot rate ).
The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum. This grade is described as light because of its relatively low density, and sweet because of its low sulphur content. Brent is the leading global price benchmark for Atlantic basin crude oils.
The intrinsic value is the difference between the underlying spot price and the strike price, to the extent that this is in favor of the option holder. For a call option, the option is in-the-money if the underlying spot price is higher than the strike price; then the intrinsic value is the underlying price minus the strike price.
The forward price of such a contract is commonly contrasted with the spot price, which is the price at which the asset changes hands on the spot date. The difference between the spot and the forward price is the forward premium or forward discount, generally considered in the form of a profit , or loss, by the purchasing party.
Electricity market is characterized by unique features that are atypical in the markets for commodities or consumption goods. Although few somewhat similar markets exist (for example, airplane tickets and hotel rooms, like electricity, cannot be stored and the demand for them varies by season), the magnitude of peak pricing (peak price can be 100 times higher than an off-peak one) sets the ...
t. e. In finance, a forward contract, or simply a forward, is a non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed on in the contract, making it a type of derivative instrument. [1] [2] The party agreeing to buy the underlying asset in the future assumes a long position, and the ...
e. The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery. [1] It contrasts with a futures market, in which delivery is due at a later date. [2] In a spot market, settlement normally happens in T+2 working days, i.e., delivery of cash and commodity must be done ...