Power markets
Day-ahead — the auction where most physical power volume clears for the following delivery day.
Intraday — continuous trading closer to delivery, used to balance position changes as forecasts firm up.
Spark spread — the margin between power revenue and the gas cost to generate it, adjusted for efficiency.
Balancing — the mechanism through which the system operator resolves residual differences between supply and demand in real time.
Gas markets
Hub pricing — gas priced at a virtual trading point rather than against oil products.
Nomination — the notification of how much gas a shipper will inject or offtake in a given period.
Storage spread — the value of injecting gas in one season and withdrawing it in another.
LNG
DES — delivered ex-ship, where the seller carries freight risk to the discharge port.
FOB — free on board, where the buyer takes title and freight responsibility at the loading terminal.
Take-or-pay — an obligation to pay for contracted volume whether or not it is lifted.
Reload — re-exporting a cargo from an import terminal when the arbitrage supports it.
Risk terms
Shape risk — exposure created because contracted volume profile differs from actual delivery profile.
Basis risk — exposure between the traded hub and the physical delivery point.
Credit exposure — mark-to-market plus potential future exposure on a counterparty position.