It has become increasingly important to have immediate access to live market prices. For several applications within energy trading and pricing, it may be good enough to use end-of-day market prices, but live price curves are especially critical for pricing of contracts and power plant dispatch optimization.
A practical example of hedging gas swing contracts
This report shows how a trader could optimize his trading decisions in the gas spot market, while delta hedging the exposures in the forward market. The spot trades maximize the optionality of the contract, while the forward hedges limit the risk.