Intraday trading
The Intraday market segment of EPEX SPOT offers both continuous and auction trading of electricity in twelve European countries. All of EPEX SPOT’s continuous Intraday markets run on the M7 trading system, the industry’s highest standard of performance. These markets are by far the most liquid in Europe. Intraday trading on the EPEX SPOT opens at 15:00h the day before. This is when continuous trading of same-day energy and auction trading of quarterly products begins.
Example extension Intraday Market:
Intraday market
The Intraday market plays a crucial role in maintaining the balance between electricity supply and demand in real time. It allows market participants to respond to short-term fluctuations, such as changes in renewable energy production, unexpected outages, or shifts in consumption patterns. By enabling trades up to 5 minutes before delivery, the Intraday market offers a high level of flexibility and helps prevent imbalance costs. It is an essential component of Europe’s evolving energy landscape, supporting the integration of renewable sources like wind and solar power. The Intraday market ensures that energy portfolios remain balanced and that the overall electricity system remains stable and efficient.
Intraday vs Day-Ahead trading
The EPEX SPOT offers both Day-Ahead and Intraday trading. The Day-Ahead markets are run through a blind auction that takes place once a day, every day of the year. The traded electricity is delivered the following day. All EPEX SPOT auction markets run on the ETS trading system, a robust and reliable trading platform.
One of the key differences between Intraday and Day-Ahead trading is the way the price is formed in the Intraday market. In Day-Ahead trades, the price for all trades is determined by the last accepted bids, whereas in Intraday trading, prices are assessed on the basis of each transaction completed. The Intraday market closes a trade when an offer is open at the same or lower price than a demand offer and when their volumes match.
Advantages of Intraday trading
One advantage of Intraday trading is that it minimises surpluses or shortages by trading on the same day. Electricity can be traded up to 5 minutes before delivery and via hourly, half-hourly or quarter-hourly contracts. Members use the Intraday market to make last-minute adjustments and balance their positions closer to real time. This reduces the risk of imbalance costs. The use of increasingly flexible production installations makes Intraday trading possible. The ability to respond to changing demand means that the energy applicant’s profits can ultimately be increased. Intraday trading also increases the stability of the energy market.
Want to know more or need advice?
Please feel free to contact us for more information about Intraday trading or participation in the Intraday market.