What is energy trading?

Energy trading involves the buying and selling of bulk energy, typically electricity, oil, and natural gas. It also includes the process of moving energy from production to the area of demand. Energy prices are not regulated so the pricing can change dramatically and often. Supply and demand, time of year, region of the country, and peak hours all affect the price of purchase. Software programs, meteorological data, and other analytical tools allow for predictions on when to buy or sell shares. Energy trading is a fast-paced industry and requires making quick decisions to create profit.