Tag: futures
Optimal Crack Spread Hedging
The traditional approach to hedging the crude oil refining margin (crack spread) adopts a fixed 3:2:1 ratio between the futures positions of crude oil, gasoline, and heating oil. The latest research indicates that this might not be the optimal approach
Price formation in electricity markets
Electricity markets present a unique set of modelling, forecasting, analytical and trading challenges. Understanding how the spot and forward markets interact, what drives each and how they're co-dependent is crucial in understanding the origination of electricity prices.
Difference between Futures and Forwards
Covering the basics of Futures and Forwards along with a little on how they are traded and priced