Intraday trading in the energy industry refers to the trading of energy (such as electricity and gas) within one day, i.e. between the day the contract is concluded and the actual delivery date. In contrast to the day-ahead market, where electricity is traded one day in advance, the intraday market allows energy supply and demand to be adjusted at short notice, for example to respond to unforeseen fluctuations in consumption or generation (e.g. due to renewable energies).

Important features of intraday trading:

• Temporal flexibility: the intraday market allows market participants to compensate for short-term imbalances that may arise due to inaccurate forecasts or unforeseen events.
• Trading hours: Trading takes place continuously and is possible around the clock in many markets. However, there are different closing times depending on the respective market.
• Price development: Prices in intraday trading are often more volatile than in the day-ahead market, as they are influenced by short-term fluctuations in supply and demand.
• Market participants: Typical participants include electricity producers, electricity suppliers, grid operators and large industrial consumers.
• Market mechanisms: Trading can take place via various platforms, such as EPEX SPOT in Europe. The price is usually determined by auctions or continuous trading.
• Integration of renewable energies: Intraday trading is particularly important for the integration of renewable energies, which are often subject to short-term fluctuations due to their dependence on the weather (e.g. wind, solar).
  

Benefits of intraday trading:

• Increasing grid stability: by adjusting generation and consumption at short notice, grid stability can be better guaranteed.
• Cost optimisation: Market participants can use intraday trading to avoid imbalances and reduce costs for balancing energy.
• Promotion of the energy transition: Intraday trading enables better integration of volatile renewable energies into the electricity grid.

To summarise, intraday trading is a key instrument for reacting to changes in energy demand and generation at short notice and therefore contributes to the stability and efficiency of the energy market.