The simultaneous purchase of a commodity or derivative in one market and the sale of the same, or similar, commodity or derivative in another market in order to exploit price differentials.

The team responsible for all long-term (greater than 3 months) trading activities. Curve trading primarily refers to optimizing asset positions and trading standard products in liquid markets. Structured trading primarily refers to trading complex structured products and flow in less liquid markets.

Financial instruments including forwards, futures, options and swaps, whose value is based on (or derived from) an underlying asset, index or reference rate.

Software that enables you to manage your portfolio risk more effectively. Analyze prices available in the market and upload your volume profile for volumetric analysis.

An online trading platform for trading in energy products for power, coal and gas.

The amount of money option buyers are willing to pay for an option, in the anticipation that, over time, a change in the underlying futures price will cause the option to increase in value. In general, an option premium is the sum of time value and intrinsic value. Any amount by which an option premium exceeds the option's intrinsic value can be considered time value.

A contract in which a seller agrees to deliver a specific commodity to a buyer sometime in the future.

The value to an option holder if (s)he were to exercise an option today.

A contract that conveys the right, but not the obligation, to buy or sell a particular item at a certain price for a limited time. Only the seller of the option is obligated to perform.

The use of horizon analysis to project bond total returns under different reinvestment rates and future market yields.

Analysis of the effect on a project's profitability due to changes in sales, cost and other factors.

A market where goods are traded for immediate delivery.

Refers to a cash market price for a physical commodity that is available for immediate delivery.

Buying one instrument or commodity and selling another, with a view to profiting from the change in the gap between the two markets.

Testing of the impact of extreme market movements on the value of a portfolio.

The art of buying and selling non-standard products, which allow Essent Trading and partners to optimize their respective risk appetite. Typical longer term deals, often with a cross commodity component in it. Often used to swap risks, for example in assets or customer portfolio.

Swaps are used to hedge exposure to basis risks, such as location risk or time exposure risk.