Parties in the commodity and energy markets enter into spread positions. Both hedgers and investors set up strategies to effectuate their specific desires. Hedgers aim to secure future margins relating to their physical assets, while investors take a position based on a view, aiming to yield a return.
In this book it is explained what, when, where and how, while related terminology is set out. It is also covered what the related exposures are and how margining takes place to manage this risk.