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.
"PhysIndex" is another example of this short hand. Index contracts allow parties to exchange the daily risk associated with basis positions by exchanging a location's daily price(the index) for the Basis price at the same location. So buying or selling PhysIndex is the buying or selling of physical natural gas in exchange for a daily index defined in the Index contract. For example, buying "Katy PhysIndex" would imply buying physical natural gas at a Katy location in exchange for the price defined by the S&P Global Platt's Katy Daily index(GDD) settlement for the relevant delivery period.
Next, let's take a quick look one more term, PhysFixed.
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