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Call Option - An option that gives the buyer (holder) the right but not the obligation to buy a specified quantity of an underlying futures contract at a fixed price, on or before a specified date. The grantor of the option is obliged to deliver the future at the fixed price if the holder exercises the option.
Capacity - The power output rating of a generator, typically in megawatts, measured on an instantaneous basis.
Cash and Carry - An arbitrage transaction involving the simultaneous purchase of a cash commodity with borrowed money and the sale of the appropriate futures contract.
Cash Market - The physical market underlying a futures or options contract.
Cash Settlement - The settlement of futures or options by paying a cash difference, rather than taking/making physical delivery.
Channel - Like it sounds a channel in which prices are moving. Parallel trend lines are drawn along the lows and highs of a price chart, forming a channel in which prices move. The trend lines form areas of support and resistance. Depending on the trend, the channel can be a down channel or an up channel.
CIF - Cost, insurance and freight charges for shipping products.
City Gate - Physical location where gas is delivered by a pipeline to a local distribution company.
Clearing - The process of matching trades, settling trades and provision of a guarantee for traded contracts, often a service performed by exchanges .
Clearing Fee -A fee charged by a clearing house for clearing trades.
Close Out - Finalizing a transaction by making an equal and opposite trade to an open position.
CNG - Compressed natural gas, an automotive fuel.
Cogeneration - The production of both electricity and useful thermal energy from the same energy source. Natural gas tends to be a favored fuel for combined-cycle cogeneration units, in which waste heat is converted to electricity.
Combination hedging - A risk management strategy that uses a combination of hedges using different derivative instruments
Congestion - When prices trade at similar levels over a period of time, the chart becomes cluttered with business at these levels and is referred to as 'congested'. Congestion areas are often seen as providing support/resistance. They are the levels at which, rather than breaking into new ground, prices tend to bog down and become trapped.
Consolidation - Prices moving in a broadly sideways range after a sharp move in one direction. If the prices have risen sharply, the gains are ‘consolidated’, often for several days after the major move.
Contango - Market situation where prices are higher for forward delivery dates than for nearer delivery dates. The opposite of backwardation is backwardation.
Conway – Conway, Kansas. The main propane trading hub in the Midwest United States.
Covered option - An option written against an underlying position.
Cushing – Cushing, Oklahoma. The delivery point for NYMEX WTI crude oil futures.
Crack Spread – The spread differential which represents refining margins. For example, if crude
oil is trading at $65/BBL and gasoline is trading at 2.25/gal then the crack spread is $29.50.