Tacking liquidity risk in illiquid power markets
The strong power market growth evident in western Europe is spreading eastwards but with emerging market opportunities come additional risk. Katie Holliday talks to market experts about how best to approach the issue of mitigating liquidity risk
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
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