Professional paper
THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD
V. Uran
Full text: croatian pdf 821 Kb
page 578-595
downloads: 2.480
cite
APA 6th Edition
Uran, V. (2006). THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD. Journal of Energy, 55 (5), 578-595. Retrieved from https://hrcak.srce.hr/4774
MLA 8th Edition
Uran, V.. "THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD." Journal of Energy, vol. 55, no. 5, 2006, pp. 578-595. https://hrcak.srce.hr/4774. Accessed 21 Nov. 2024.
Chicago 17th Edition
Uran, V.. "THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD." Journal of Energy 55, no. 5 (2006): 578-595. https://hrcak.srce.hr/4774
Harvard
Uran, V. (2006). 'THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD', Journal of Energy, 55(5), pp. 578-595. Available at: https://hrcak.srce.hr/4774 (Accessed 21 November 2024)
Vancouver
Uran V. THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD. Journal of Energy [Internet]. 2006 [cited 2024 November 21];55(5):578-595. Available from: https://hrcak.srce.hr/4774
IEEE
V. Uran, "THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD", Journal of Energy, vol.55, no. 5, pp. 578-595, 2006. [Online]. Available: https://hrcak.srce.hr/4774. [Accessed: 21 November 2024]
Full text: english pdf 821 Kb
page 578-595
downloads: 1.225
cite
APA 6th Edition
Uran, V. (2006). THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD. Journal of Energy, 55 (5), 578-595. Retrieved from https://hrcak.srce.hr/4774
MLA 8th Edition
Uran, V.. "THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD." Journal of Energy, vol. 55, no. 5, 2006, pp. 578-595. https://hrcak.srce.hr/4774. Accessed 21 Nov. 2024.
Chicago 17th Edition
Uran, V.. "THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD." Journal of Energy 55, no. 5 (2006): 578-595. https://hrcak.srce.hr/4774
Harvard
Uran, V. (2006). 'THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD', Journal of Energy, 55(5), pp. 578-595. Available at: https://hrcak.srce.hr/4774 (Accessed 21 November 2024)
Vancouver
Uran V. THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD. Journal of Energy [Internet]. 2006 [cited 2024 November 21];55(5):578-595. Available from: https://hrcak.srce.hr/4774
IEEE
V. Uran, "THE TECHNIQUES OF EXERCISING FUTURES AND FORWARDS BY THE HEDGING METHOD", Journal of Energy, vol.55, no. 5, pp. 578-595, 2006. [Online]. Available: https://hrcak.srce.hr/4774. [Accessed: 21 November 2024]
Abstract
Supply and demand are always supposed to be balanced due to certain limitations relating to electricity. Electricity prices fluctuate constantly and cannot be determined with complete certainty. The spot market price of electricity is a reflection of the continuous equilibrium among the production, supply and distribution of electricity. Due to uncontrolled exposure to the risk of the continual fluctuations of the spot market prices, market participants can incur financial losses.
For this purpose, futures and forwards have been introduced on the markets. Owing to them, market risk can be hedged by employing the hedging method. Two types of such contracts exist: futures traded on electricity exchanges and forwards traded on over-the-counter markets. In this article, the descriptions, differences and application of these contracts are presented. A description of the hedging method and its application to futures is provided. At the end of the article, an application of a futures contract on the largest Middle European electricity exchange, EEX, is presented.
Keywords
contract; electricity; forwards; futures, hedging
Hrčak ID:
4774
URI
https://hrcak.srce.hr/4774
Publication date:
15.11.2006.
Article data in other languages:
croatian
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