Electricity Futures

Discussion in 'Commodity Futures' started by pinetboltz, Dec 4, 2017.

  1. pinetboltz

    pinetboltz

    Anyone here trade electricity futures?
     
  2. Visaria

    Visaria

    Nah, the bid ask spreads are shocking :sneaky:
     
  3. truetype

    truetype

    I looked into them, but wasn't amped to trade them.
     
    Overnight and MoneyMatthew like this.
  4. The secret of a good power future scalp is all in the electrocution
     
    Overnight likes this.
  5. I mean execution
     
  6. bone

    bone

    The power markets are quite segmented and colloquial - regional FERC RTO/ISO's do allow approved and vetted 'marketers' to provide liquidity in the real time and next day LMP markets (INCs, DECs, UTCs, that type of thing) which is essentially an OTC bilaterally cleared market run by the regional ISO. Takes DEEP pockets and membership is required.

    There is also a financially cleared Swaps market run by Nymex (Clearport) and ICE (London Clearing House). Also takes DEEP pockets.

    This is a seriously adult swim.
     
    MattZ likes this.
  7. Don't some brokers offer access to these markets at a lower account size?
     
  8. bone

    bone

    Not that I’m personally aware of - again, very deep pockets. This is like choosing to snorkel off the Farallon Islands during seal calving season. I am not aware of a more volatile market - including cryptocurrencies. I have literally seen daily vol at 1,000% during July and August. I saw a prominent German IB desk lose $25M in a single day Trading the ERCOT real time market - lots of stories like that.
     
    Last edited: Dec 5, 2017
    dealmaker likes this.
  9. sle

    sle

    A good friend of mine trades these, lots of interesting stuff to do apparently - especially if you have a fair understanding of the capacity for various players.
     
  10. truetype

    truetype

    Basically the industry vets drain money from hedgefund noobs who don't understand the ins and outs but are attracted by the volatility. "Look, a bright shiny object!"
     
    #10     Dec 5, 2017