Tacking liquidity risk in illiquid power markets

Liquidity turns eastward

Emerging markets hold unique opportunities for energy and commodities players and many are keen to establish a strong presence in a new product or region before their competitors. But immature markets are high-risk environments and despite potential for huge profit margins, tackling liquidity risk can pose a challenge.

Liquidity defined

Liquidity can be defined as the ease with which a trader can enter or exit a financial position without impacting price. If a trader is not able to move in and