Commodities traders are renowned for moving quickly. Decisions must be made quickly or opportunities will be missed. Natural gas traders, like traders of other commodities, engage in industry short hand to describe complex financial transactions.
“PhysFixed" is a prime example of this short hand. “PhysFixed" is short hand for the buying or selling of physical natural gas in exchange for a stated fixed price. Buying Katy PhysFixed at $3.00 would imply buying physical natural gas at a Katy location in exchange for a fixed $3.00 per MMBtu price.
Now that we've covered some key terms, let's take a look at natural gas pipeline capacity agreements.
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