01 Jan 2001, Energy Risk glossary , Energy Risk
1) a long-term swap agreed bilaterally, generally between generators and electricity supply companies, and referenced to prices in the relevant pool.
2) a short-dated swap agreement used to minimise the basis risk between the daily published Platt’s quote for dated or physical Brent in a specific time window in the future and the forward price quote for a specific month. Settlement of a CFD is based on the published price difference at a designated time.
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