Buy side in the order book.

    Assignment (of an option)

    If an option is exercised, the clearing house assigns a depositor of securities to the holder of the option through a "drawing of lots" procedure.


    An option is “at-the-money” if the price of the underlying security equals the exercise price.


    Trading form for pricing and matching of bid and ask orders into trades. In auctions, all orders in the book are matched to form transactions at a given point of time.


    The central trading system is called the back-end of the exchange. The system is responsible for matching supply and demand and processes these in accordance with specific execution rules.

    Balance area

    Energy volume account for power and natural gas in which feeding-in, withdrawals and transfers of energy to other balancing areas are recorded. Balance areas are centrally managed by TSOs. The account is managed by the so-called balance area coordinator who is responsible for deviations in the balance area.

    Balance area agreement

    Contractual agreement between a system user and the transmission system operator/gas transmission operator regarding the settlement of power and natural gas deliveries.

    Base load

    Base load refers to the load profile of power deliveries with a constant output over 24 hours of every day of the delivery period.


    Term for companies that do not conclude transactions for their own account but on behalf of a third party. On EEX, brokers assume the arrangement of transactions concluded over-the-counter (OTC trades).

    Call option

    An option granting the buyer the right to buy a certain number of the underlying security at the exercise price.


    Positions in year and quarter futures are fulfilled through cascading. On their last trading day, these futures are replaced with equivalent positions in quarter or month futures.

    Cash settlement

    The exclusively financial fulfilment of transactions is referred to as cash settlement.


    Clean Development Mechanism. A CDM is a project-based mechanism which permits the execution of emission reduction projects in developing countries and the use of emission credits from these projects (CER) to ensure compliance with Kyoto commitments. CDM projects increase the total global quantity of emission credits.


    Certified Emission Reductions are emission credits generated by CDM projects in developing countries. CER Spot and Derivatives Market products can be traded on EEX.


    Clearing refers to the financial and physical settlement of transactions.

    Clearing house

    This is a body which steps into the process chain between the buyer and seller in the capacity of the central counterparty. The clearing house settles the transactions with the buyer and seller, carries out the delivery of transactions with these and collateralizes the transactions.

    Clearing member

    Participant in the clearing process who has a clearing license. The clearing license is obtained through the conclusion of a corresponding clearing agreement with ECC. There are two forms of clearing membership: A general clearing license authorises the holder to clear transactions for its own account and to clear customer transactions or transactions by Non-Clearing Members. A direct clearing license authorises the member concerned to clear transactions for its own account and to clear customer transactions as well as transactions by affiliated Non-Clearing Members.


    Transaction to close an existing buy/sell position on the Derivatives Market.

    Continuous trading

    Form of trading for pricing and matching of buy and sell orders into trades. In continuous trading, all orders in the order book are constantly checked for their executability. As soon as two orders are executable they are matched immediately. Competing orders in the order book are prioritised, firstly by price and then time (price-time priority).


    Tradable standardised unit of an underlying asset. The contract specifications determine the design of a given contract, e.g. the contract volume and the maturity date of the delivery.

    Control area

    Defined grid area with regard to which a transmission system operator is responsible for balancing. Control areas serve as places of delivery for power contracts.

    Current Data

    The “Current data” package for end-of-day information products provides access to the market data for the current and the previous year.


    German Emissions Trading Authority, the national authority of the German Federal Environment Agency responsible for the implementation of the market-based climate protection tools under the Kyoto Protocol. This authority maintains the German national register for EU emission allowances.

    Delayed data

    Delayed data comprises trading data for individual trades of the different Spot and Derivatives Markets which are provided with a delay of 15 to 20 minutes, however, no end-of-day data.


    Delivery comprises the physical fulfilment of transactions.


    The ratio between a change in an option premium and a change in the underlying.


    Collective term for futures and options.

    Derivatives Market

    Trading transactions concluded on the Derivatives Market are settled physically and financially at a later time agreed in advance. Trading on the Derivatives Market permits portfolio optimization in the medium to long term. On the EEX Derivatives Market, trading participants can hedge against price risks up to six years in the future.


    ECarbix European Carbon Index is calculated and published as an exchange-based price for the current market value of EU emission allowances (EUA) of the third trading period.


    European Commodity Clearing (ECC) is the central clearing house for energy and related products in Europe. ECC provides clearing and settlement services for the EEX Group exchanges and further partner exchanges.

    EEX Market Data Circular

    The EEX Market Data Circular informs customers of news regarding the Info products. The EEX Market Data Circular is provided on the EEX website via RSS feed and e-mail.

    End-of-Day Data

    End-of-day data comprises the trading data of the different Spot and Derivatives Markets from the end of the trading day; however, they do not include delayed data.


    The European Power Exchange EPEX SPOT SE operates the markets for physical short-term power trading in Central Western Europe, the United Kingdom and Denmark, Finland, Norway and Sweden. EPEX SPOT is a member of EEX Group.


    EU Emission Trading Scheme - the emission trading system of the European Union, which as launched as the first multinational emissions trading system in 2005. The first trading period of the EU ETS expired at the end of 2007, the second trading period began in 2008 and ended in 2012. The third trading period began in 2013 and will end in 2020. The fourth trading period of the EU ETS will start in 2021.


    EU Allowance - One EUA confers the right to emit on tonne of CO2 equivalent. AN EUA is the smallest tradable unit in EU emissions trading.


    EU Aviation Allowance. Special EU emission allowances which can only be used by airline companies for compliance purposes.

    Eurex System

    The Eurex System is an electronic trading and clearing system for futures and options markets. The Eurex System is used for the EEX Derivatives Markets.

    European Option

    An option which can only be exercised on the last day of trading.

    Exercise price

    The exercise price of an option is the price at which the underlying security is delivered upon exercising of the option.

    Final settlement price

    The final settlement price is the settlement price on the last trading day.

    Financial settlement

    Financial settlement comprises the financial fulfilment of a trade.


    This term refers to the user interface of the trading system for the participants, which permits the exchange of data with the back-end. The trading participants have the possibility to use individual front-ends or ISV software.


    A future is the contractual obligation to buy (buyer of a future) or sell (seller of the future) a specified quantity of an underlying security at a specified price during a specified period (delivery period). Futures contracts are exclusively traded on regulated exchanges and settled on a daily basis at the current market price. 

    GV Portal

    GlobalVision Portal is Trayport’s alternative connectivity option for Exchange customers.

    Historical data

    In end-of-day products, the “historical data” package comprises 2-month access to historical market data up to and including the previous year.

    Iceberg order

    Buy or sell order which is specified by its limit, total quantity and peak quantity. The Iceberg Order is placed in the order book for partial orders to the amount of the peak quantity. As soon as a partial order has been executed, a new partial order to the amount of the peak quantity is placed in the order book. This process is repeated until the total quantity of the Iceberg Order is executed.

    Implicit volatility

    Volatility of the underlying considered in the option premium.


    A call option (call) is “in-the-money” if the price of the underlying asset is above the exercise price. A put option (put) is “in-the-money” if the price of the underlying security is below the exercise price.


    Info-Products comprise processed market data granting the user electronic access to data for products on the Spot and Derivatives Market established on the exchange. Info-products are distinguished in Info-Vendor, a package providing the data only for commercial use, Info-User, a package for the internal use of the data and Uni-Vendor, a package for educational institutions with the right to pass it on to students for the use in scientific work.

    Internal accounts

    Inventory accounts of trading participants for EUA which are kept in trust by the clearing house. Changes in the inventory arising on account of delivery and acceptance, depositing in fiduciary safe custody and returning of allowances from fiduciary safe custody are booked on these internal accounts.

    Intra-day margin

    Additional margin which has to be deposited within a trading day due to a highly volatile market situation or due to a high volume of transactions.

    Intraday market

    This is a sub-market of the Spot Market on which products are traded very short-term – on EPEX SPOT up to 45 minutes before delivery.

    Intrinsic value

    The intrinsic value of an option corresponds to the difference between the current market price of the underlying security and the exercise price of the option provided this entails a price advantage for the buyer. The intrinsic value is always zero or larger than zero.


    Independent Software Vendor – An ISV offers solutions for trading. EXX cooperates with a large number of ISVs.

    Limit order

    Buy or sell order which is entered with a position limit and executed at said limit or at a better limit.


    Margins are securities that are deposited for open positions or transactions that are executed with the clearing house.


    With the help of the mark-to-market procedure profits and losses from open futures positions, which are caused by price changes in the futures, are calculated on a daily basis. The changes in the value of the individual positions are established on the basis of the daily settlement prices. The settlement of these changes in value is carried out with credit notes or margin calls.

    Market area

    Term used in natural gas trading. A market area is operated by a gas network operator. The number of market areas is determined by physical restrictions and ownership boundaries in the natural gas industry. EEX offers natural gas trading for 12 European market areas (in 10 countries).

    Market coupling

    Market coupling is a process employed to efficiently manage grid congestion between adjacent Power Spot Markets. This is done with the help of implicit auctions of grid capacities. In order to achieve this, the Spot auctions of the exchanges taking part must be coordinated.

    Market maker

    A market maker is a trading participant who holds both a buy and a sell order (quote) in the order book for a minimum period during the trading day. Market makers help to ensure basic liquidity in the order book.

    Market order matching range

    Price corridor around the last price traded, within which only market orders can be executed.


    A transaction which was effected as a result of an incorrect entry when entering an order is called a “mistrade”.


    The delivery of schedules to the transmission system operator or grid gas company is called nomination.

    Non-clearing member

    Exchange Participants that do not have a Clearing License. These are usually trading participants who have concluded a contract with a Clearing Member in order to participate in trading on the Exchange.

    Open interest

    The Open Interest refers to the total of all derivatives contracts which have been opened (i.e. not yet settled) at a given point in time. The Open Interest published by EEX considers all opened  positions regardless if a position has been closed with a counter trade. The Open interest provided is not netted.

    Opening of a position

    If a new position is created when a future or an option is bought or sold, this is referred to as “opening of a position”.


    An option is the contractual right to buy (buy or call option) or sell (sell or put option) a specified volume of an underlying security at a specified price and a predetermined future time.

    Option premium

    See option price.

    Option price

    Price of an option. Synonym for "option premium".

    Option series

    Call and put option with the same underlying asset, exercise day and exercise price.


    A call option (call) is referred to as being “out-of-the-money” if the price of the underlying security is below the exercise price. A put option (put) is out of the money if the price of the underlying security is above the exercise price.

    Peak load

    This refers to a load profile for power deliveries with a constant output over twelve hours from 8 a.m. to 8 p.m. on any business day of the delivery period.


    PEGAS is the central gas market of EEX Group operated by Powernext. PEGAS offers its customers access to all products on a single trading platform, so they can trade natural gas contracts for the Belgian, Dutch, French, German, Italian and British market areas.


    The Physical Electricity Index (Phelix) is the daily published price index for base load (Phelix Base) and peak load (Phelix Peak) on the Power Spot Market for the market area Germany. The Phelix is calculated by EPEX SPOT and is the base value for the EEX German Power Future.

    Physical fulfilment

    EEX trading participants can combine the financial fulfilment of their futures positions (see cash settlement) with a 'physical fulfilment' on the Spot Market of the exchange by buying or selling the underlying of the future (which is actually settled in the context of cash settlement).

    Place of delivery

    Place for the delivery of the underlying asset for the physical fulfilment of the trades. The place of delivery is laid down in the contract specifications. In the case of power and natural gas, these are usually the grids of the transmission system operators/gas transmission system operators.


    A position is a transaction in a futures or options contract that is not yet fulfilled financially or physically in part or in its entirety. Therefore, it constitutes an obligation to fulfil the  ransaction at a specified date in the future.

    Position limit

    A position limit is the maximum number of contracts that may be held by one exchange participant or one customer for its own account.

    Primary Market Auction

    Emission allowances are issued to the market for the first time in primary market auctions. Since 2010, EEX has been active as a service provider in this field and is the leading European platform for primary market auctions.

    Principle of most executable volume

    The principle of most executable volume describes the method of setting the price in an auction. The price, which is established in accordance with the principle of most executable volume, is the price at which the highest volume can be combined with the lowest surplus.

    Put option

    An options contract which authorises the buyer to sell a specific number of the underlying securities at the exercise price.

    Real-time Data

    Real-time data comprises trading data regarding individual trades in the different Spot and Derivatives Markets which are provided in real time and/or with a minimum delay.

    Regulatory indices

    Regulatory indices which EEX provides to the customer in the form of Info products and which are based on the regulatory specifications.


    A schedule is an instruction to the transmission system operator (TSO) to book power or natural gas between two balance areas. The physical settlement of the trades is carried out by nominating the schedules to the respective TSO for power and gas.

    Secondary Market

    Continuous trading of CO2 emission allowances takes place on the secondary market. EEX operates the secondary market for EU Allowances (EUA), EU Aviation Allowances (EUAA) and Certified Emission Reductions (CER).


    Settlement comprises the financial and physical fulfilment of a trade.

    Settlement price

    Daily market price of a future or option contract which is established by the exchange and used for its daily settlement.

    Short position

    A short position is a transaction by the seller of a good/commodity under a futures or options contract that is not yet fulfilled in part or in its entirety. Thus, it constitutes an obligation for the seller to sell a certain good/commodity at a specified date in the future. Offsetting transaction: Long Position.

    Spot market

    Trading transactions concluded on the Spot Market are settled physically at least two days after the conclusion of the trade. The Spot Market is used for the short-term optimization of procurement and sales on the market.


    The range between best bid and best ask is called spread.

    Stop Market Order

    Buy or sell order which is placed in the order book as an unlimited order as soon as the stop limit entered is reached in trading.


    Global Vision Trading Gateway – a technology offered by Trayport to connect differing trading markets.


    Smallest unit by which the price of a future or of an option can change.

    Time Spread

    Difference in the price of two futures contracts with the same underlying security but different maturities.

    Trade confirmation

    Confirmation of the conclusion of a trade and, concurrently, of the execution of an order.

    Trade registration

    A service which enables the trading participants to register transactions concluded over the counter (OTC transactions) on the exchange, as a result of which clearing and settlement are provided by the clearing house.

    Trading day

    The days specified by the respective exchange on which trading takes place.

    Trading participant

    Company which is licensed by the exchange as a trading participant in Spot and/or Derivatives trading.

    Transparency Data

    Generation data from different market areas, which are published on the EEX Transparency Platform.


    Transmission System Operator – TSOs are responsible for operating the power transmission systems within a given delivery area.


    The subject matter of a futures or option contract is referred to as the "underlying asset". The underlying can be the delivery of a commodity (power, natural gas, emission allowances), but also an index (e.g. Phelix) or - in the case of options - a future.


    The higher the volatility, the greater the upward and downward price fluctuations in the market.


    The seller of an option is also referred to as the "writer".