In the Electricity Intraday Market (IDM), buyers and sellers place bids at various price levels. These bids form the Order Book, which represents the total “market depth.” When the price of a buyer and a seller overlap, a match occurs, and a transaction is recorded.
Market depth is a vital structure that reveals opportunities within a contract. The party that places the initial offer provides the opportunity; the party that provides the counteroffer to trigger the match is the one who capitalizes on it. The critical question is: Who took the first step? The answer reveals how participants are reacting to market conditions, a concept we call Buyer-Seller Appetite.
Why is Market Price Only Half of the Story?
- Buyer Appetite: If the buyer is “hungrier” (meaning they step up to “hit” an existing sell offer), it indicates high demand. In this scenario, consumers feel compelled to secure electricity even if prices rise. This environment allows sellers to execute trades at higher price points.
- Seller Appetite: Conversely, if the seller is hungry (meaning they drop down to match a buyer’s bid), it signals oversupply. Here, producers are eager to offload their electricity, increasing the likelihood that buyers can transact at more advantageous prices.
Additionally, the spread (the gap between the best buy and sell price) at the instant of matching is a key indicator. If a match occurs while the spread is wide, it suggests that one party felt a pressing need to react quickly to the market, indicating a higher level of “appetite.”
How does smartPulse Analyze This?
At smartPulse, we monitor intraday transactions instantaneously to identify who approached whom so that we can provide insight and answer the question: “Who made the first move?” in real time.
To achieve this, our infrastructure analyzes the preceding depth data immediately after every transaction. This allows us to dynamically determine which side placed the initial offer and which side accepted it to finalize the match.
Technical Differences: Türkiye vs. Europe
Performing this analysis varies by region due to data structures:
- In Türkiye: The process is relatively straightforward because the market operator broadcasts the entire depth info every time a change occurs.
- In Europe: European markets only share the specific offers that have changed. This requires sophisticated, instantaneous synchronization to correctly reassemble the full order book.
smartPulse handles these complexities behind the scenes. Whether you are trading in Turkish or European markets, you receive the same seamless experience through a single, unified interface.
Predicting the Future with Historical Data
We don’t just provide real-time data; we archive the analysis of every transaction. This allows users to study past market behaviors and predict when similar opportunities might arise under comparable conditions in the future.
Identifying the First Move: Buyer or Seller?
Knowing whether the buyer or the seller made the first move provides the insight needed to understand market sentiment and refine your strategy. smartPulse makes these insights accessible, simplifying complex data to empower your decision-making process.
Are you ready to optimize your energy trading performance? Contact smartPulse today to book a demo and see how our trading platform can transform your energy strategy.
Kemal Baytekin
