M&C Energy Group Glossary |
Find here terms and their explanations commonly used in Energy Industry, Finance and Trading Boards
|
|
You can always search for entries. |
|
|
|
| B |
| There are 43 entries in the glossary. |
| Pages: 1 |
| Backwardation | Market situation in which futures prices are lower in each succeeding delivery month. Also known as an inverted market. The opposite of contango. |
| | |
| Banker's Acceptance | A draft or bill of exchange accepted by a bank; payment is guaranteed by the accepting institution. |
| | |
| Barge | A vessel, either motorized or towed, used to carry products in navigable waterways. Inland river barges that carry oil products generally hold 25,000 barrels. Ocean-going barges range in size up to 120,000 barrels. |
| | |
| Barrel | A unit of volume measure used for petroleum and refined products. 1 barrel = 42 U.S. gallons. |
| | |
| Barrels per Day | Market situation in which futures prices are lower in each succeeding delivery month. Also known as an inverted market. The opposite of contango. |
| | |
| Base Load | The minimum amount of electricity being used during non-operational hours. Base load is the level below which electricity demand never drops. (i.e. A site with a high maximum demand of 750 kVa whose demand never drops below 250 kVa would have a base load of 250 kVa.) |
| | |
| Base Metal | Copper, aluminum, lead, nickel, and tin. |
| | |
| Baseload Capacity | Electric generating equipment normally operated to serve loads on an around-the-clock basis. |
| | |
| Basis | The differential that exists at any time between the cash, or spot, price of a given commodity and the price of the nearest futures contract for the same or a related commodity. Basis may reflect different time periods, product forms, qualities, or locations. Cash minus futures equals basis. |
| | |
| Basis Risk | The uncertainty as to whether the cash-futures spread will widen or narrow between the time a hedge position is implemented and liquidated. |
| | |
| Batch | A measured amount in which crude oil and refined product shipments are sent through a pipeline. |
| | |
| Batching Sequence | The order in which shipments are sent through a pipeline. |
| | |
| Bcf | Billion cubic feet. |
| | |
| Bear | One who anticipates a decline in price or volatility. Opposite of a bull. |
| | |
| Bear Market | Market in which prices are in a declining trend. |
| | |
| Bear Spread | 1) The simultaneous purchase and sale of two futures contracts in the same or related commodities with the intention of profiting from a decline in prices but, at the same time, limiting the potential loss if this expectation is wrong. This can usually be accomplished by selling a nearby delivery and buying a deferred delivery. 2) A delta-negative options position comprised of long and short options of the same type, either calls or puts, designed to be profitable in a declining market. An option with a lower strike price is sold and one with a higher strike price is bought. |
| | |
| Bearish | Believing that market prices are about to fall. |
| | |
| BETTA | The British Electricity Transmission and Trading Arrangement introduced in 2005 covering England, Wales and Scotland, replacing NETA which did not cover Scotland. |
| | |
| Bid | A motion to buy a futures or options contract at a specified price. Opposite of offer. |
| | |
| Bilateral Energy Trading | Trading whereby two parties (for example a generator and a supplier) enter into a contract to deliver electricity at an agreed time in the future. |
| | |
| Black-Scholes Model | An options pricing formula initially derived by Fisher Black and Myron Scholes for securities options and later refined by Mr. Black for options on futures. |
| | |
| Boiler Room | An enterprise which often is operated out of inexpensive, low-rent quarters that uses high pressure sales tactics, generally over the telephone, and possibly false or misleading information to solicit generally unsophisticated investors. |
| | |
| Book Transfer | Transfer of title without actually delivering the product. |
| | |
| Box Spread | An options market arbitrage in which both a bull spread and a bear spread are established for a riskless profit. One spread includes put options and the other includes calls. |
| | |
| Brand | Insignia identifying the producer of a specific commodity. |
| | |
| Break | A rapid and sharp price decline. |
| | |
| Breakeven Point | The underlying futures price at which a given options strategy is neither profitable nor unprofitable. For call options, it is the strike price plus the premium. For put options, it is the strike price minus the premium. |
| | |
| British Thermal Unit | The amount of heat required to increase the temperature of a pound of water 1o Fahrenheit. A Btu is used as a common measure of heating value for different fuels. Prices of different fuels and their units of measure (dollars per barrel of crude, dollars per ton of coal, cents per gallon of gasoline, cents per thousand cubic feet of natural gas) can be easily compared when expressed as dollars and cents per million Btus. |
| | |
| Broker | 1) An individual who is paid a fee or commission for acting as an agent in making contracts, sales, or purchases. 2) A floor broker is a person who actually executes trading orders on the floor of an exchange. 3) An account executive, registered commodity representative, or customers' man who deals with customers and their orders in commission house offices. See also Futures Commission Merchant. |
| | |
| BS&W | Bottom sediment and water, often found in crude oil and residual fuel. |
| | |
| Btu | See British thermal unit. |
| | |
| Bulge | A rapid advance in futures prices. |
| | |
| Bull | One who anticipates an increase in price or volatility. Opposite of a bear. |
| | |
| Bull Market | Market in which prices are in an upward trend |
| | |
| Bull Spread | 1) The simultaneous purchase and sale of two futures contracts in the same or related commodities with the intention of profiting from a rise in prices but at the same time limiting the potential loss if this expectation is wrong. This can be accomplished by buying the nearby delivery and selling the deferred. 2) A delta-positive options position composed of both long and short options of the same type, either calls or puts, designed to be profitable in a rising market. An option with a lower strike price is bought and one with a higher strike price is sold. |
| | |
| Bullion | Precious metals cast into bars or other uncoined form. |
| | |
| Bullion Coin | A precious metal coin whose market value is determined by its inherent precious metal content. They are bought and sold mainly for investment purposes. |
| | |
| Bullish | Believing that market prices are about to rise. |
| | |
| Bundle | A stack of copper cathodes strapped together for shipping. |
| | |
| Bunker C Fuel Oil (or bunkering fuel) | Fuel used for ships. Generally refers to a No. 6 grade of residual fuel oil with an API gravity about 10.50. |
| | |
| Business Day | For electric utilities, as determined by the North American Electric Reliability Council (NERC), the business day typically begins at 6 A.M. (the hour ending 0700) for a 24-hour period. Holidays are also determined by NERC and are separate from U.S.-designated holidays. |
| | |
| Buyer's Market | A condition of the market in which there is an abundance of goods available and hence buyers can afford to be selective and may be able to buy at less than the price that previously prevailed. See seller's market. |
| | |
| Buying Hedge | Also called a long hedge. Buying futures contracts to protect against possible increased costs of commodities that will be needed in the future. |
| | |
|
|
Glossary V2.0 |
