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The simultaneous purchase of a commodity or derivative in one market and the sale of the same, or similar, commodity or derivative in another market in order to exploit price differentials.
- Browse Related Terms: 12-month strip, Arbitrage, Delivery Point(s), Financial transmission right, Forward price curve, Futures market, Henry Hub, Locational marginal price, long, Mark-to-market, Physical basis, Reference price, Short position, Spark spread, Uplift, West Texas Intermediate (WTI)
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