The key challenges energy companies experience includes unparalleled volatility in rates, intricate supply chains, and developing regulatory needs. Sudden fluctuation in the energy prices impacts predictions and negatively affects bottom lines.
Everything we see around depends on energy to function – from lights and home appliances to computers & phones to running vehicles. Demand for energy all across the world keeps on escalating and it is predicted to still rise. So, energy trading has been preferred by many traders.
What is energy trading?
Energy trading differs from financial trading. You cannot store energy, so its demand and supply chain need to be balanced consistently in real-time. It can cause a significantly different market environment in comparison to the common capital markets. However, you will need to get familiar with energy trading infrastructure, so as to be a successful energy investor. Energy trading involves purchasing stocks in gas, oil, electricity, CO2 emission certificate, solar, and more. You will also need ETRM [Energy Trade & Risk Management] to manage trading risks and earn more money.
What is Energy Trade & Risk Management?
It is a software program, which supports financial and physical trading & risk management of different commodities. The solution offers clear view of complex portfolios to large energy consumers, energy suppliers, energy producers, and more.
From front to back-office this software gets support to –
- Capture deals & price management
- Position management
- Logistics & scheduling
- Risk reporting via sophisticated visualization and analytic tools [EaR, VaR]
- Settlement, accounting and regulatory reporting
- Valuation & optimization
- Manage exchange – OTC [over the counter], FX [foreign exchange], and IR [interest rate] derivatives
Energy Trade & Risk Management software supports
Producers, marketers, and consumers use energy solution app, to manage processes while converting agricultural product into energy. Right from raw material procurement to transportation & storing, price risk management with options and future, sales & distribution of finished goods is covered.
Software helps the energy supplier to manage quality of delivered product on the basis of quality analysis report, contract pricing rejections and penalties.
Capturing physical transaction to position tracking and scheduling gets managed. The program offers seamless process to schedule natural gas positions, which are to be degasified and liquefied.
The program captures transaction, scheduling, operations, confirmation, settlement, and risk management. Using real-time capacity, balance, and transportation cost date the app supports intricate scheduling.
Overall lifecycle of crude oil and refined products like purchasing, refining, blending, storing, transporting, selling and distributing is managed. Using this software energy companies get to track and manage blending, refining, and supplies.
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