Ercot Blowout Day

Discussion in 'Commodity Futures' started by sledged, Feb 3, 2011.

  1. sledged


    Anyone here trade Ercot? What an insane day, 50 mw positions where there were $400k p and l swings from one trade to the next. I saw one trade on the Bal Day North go for $1800 a mw then the next $1400, then $1100. This was all after a move up from a low of $100/mw. Insane moves, no way there is any more volatile thing to trade than power.
  2. No, but I was on the receiving end of the rolling blackouts. And praising Allah that I have a fixed rate contract.
  3. 1) If you have low blood pressure, then ERCOT may be cure? :confused:
    2) Electricity may very well be the most statistically volatile commodity because of the instantaneous nature of the demand, especially in the afternoon. :eek: :D
  4. rose


    and storage is difficult/impossible
  5. davidfed


    What platform do you use to trade ercot? Is there enough volume on any of the OTC contracts for scalping or is it really only for longer term positions?
  6. sledged


    OTC and on ICE you can trade it on. There's different Hubs and contracts. You can trade contracts for on peak, off peak for one day, all the way out through years.
  7. McBet


    Except... Volatility is also a commodity:) VIX futures contract did spike 2/3 during a single exceptional day... IMO leverage should not have been allowed there, at least not on the short side. But I suppose that Feb 2007 jump is just like the track record of put sellers (such as Victor Niederhoffer), black on white, for everyone to see.
  8. Was going to buy 800's but we got a call saying we were about to lose power.... FML...
  9. any benefits of trading electricity compared to trading more popular stuff such as crude oil futures, etc.?
  10. The most volatile commodity that exists.
    #10     Feb 6, 2011