Encore Glossary |
Find here terms and their explanations commonly used in Energy Industry, Finance and Trading Boards
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| There are 11 entries in the glossary. |
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| Half-Hour Data (HHD) | This is the product of the half-hour data meter. The data is used for invoicing, tendering and reporting purposes. |
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| Hallmark | A stamped impression on the surface of a precious metals bar that indicates the producer, serial number, weight, and purity of metal content. |
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| Heating Oil | No. 2 fuel oil, a distillate fuel oil used either for domestic heating or in moderate capacity commercial-industrial burners. |
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| Heavy Crude | Crude oil with a high specific gravity and a low API gravity due to the presence of a high proportion of heavy hydrocarbon fractions. |
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| Hedge | The initiation of a position in a futures or options market that is intended as a temporary substitute for the sale or purchase of the actual commodity. The sale of futures contracts in anticipation of future sales of cash commodities as a protection against possible price declines, or the purchase of futures contracts in anticipation of future purchases of cash commodities as a protection against the possibility of increasing costs. |
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| Hedge Ratio | 1) Ratio of the value of futures contracts purchased or sold to the value of the cash commodity being hedged, a computation necessary to minimize basis risk. 2) The ratio, determined by an option's delta, of futures to options required to establish a riskless position. For example, if a $1/barrel change in the underlying futures price leads to a $0.25/barrel change in the options premium, the hedge ratio is four (four options for each futures contract). |
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| Hedger | A trader who enters the market with the specific intent of protecting an existing or anticipated physical market exposure from unexpected or adverse price fluctuations. |
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| Historical Volatility | The annualized standard deviation of percent changes in futures prices over a specific period. It is an indication of past volatility in the marketplace. |
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| Horizontal Spread | Calendar or time spread. |
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| HV | High Voltage (Normally 11,000 Volts). |
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| Hydrocarbons | Organic chemical compounds containing hydrogen and carbon atoms. They form the basis of all petroleum products. |
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Glossary V2.0 |
