Energy Trading: The Electricity Market
Electricity is a tradable commodity just as natural gas and oil are tradable. Electricity tends to exhibit much more price volatility than other commodities due to the fact that electricity can not be stored. The supply of power needs to meet the instantaneous demand for power; when it does not, volatility occurs often with dramatic swings in price. These price swings can be the result of supply constraints, often caused by generation shortfalls or reduced transmission availability, or they can be a result of demand being different than forecast – always a result of weather being different than forecast. It’s these events that cause volatility that provide the opportunity for Dynasty to create value. Our trades are completed in the organized US electricity markets or on the major commodity exchanges that trade products that reference the price of power in these organized markets.
Disclaimer: Dynasty Power Inc. does not provide trading advice to, or conduct trades for or on behalf of, unaffiliated parties. All contents of this website are for information purposes only and are not a solicitation for funds.