Will the market start from a hedged position

15 January 2008

The budget versus trading debate often comes up at this time of year, when players see high prices and start to look at the new tarding year ahead.

Large customers often worry about a rise in market prices because they tend to come form a position of being short. More and more feel that if they locked in to prices at a certain level, they would have a secure price position, then for the more adventurous prices could be unwound when they felt that the market was likely to fall. At the point at which the market does fall they could then buy back at that level. Increasingly because players are looking to manage a risk position the risk managers are becoming more keen to be hedged, and this decision is often tied up with financial commitments rather than the actual price in the market.


Electricity  Supply  Bull Market  Risk Management 

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