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 15:00 the day before. This is when continuous trading of same-day energy and auction trading of quarterly products begins.

Intraday vs Day-Ahead trading

The EPEX SPOT (formerly APX) 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.

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