Fair Value 


This has two meanings to investors. Generally, it is used to mean the value attributed to stock by an individual investor or broker but in futures trading, it can refer to the predicted price of a market which is reflected in the cost to open a position.


Far Curve


The forward curve beyond the first two front seasons.




The Financial Conduct Authority (FCA) is the organization responsible for the regulation and oversight of the financial markets and financial service firms in the UK.




The Federal Reserve bank is the central bank in charge of monetary and financial stability in the United States. 


Feed-in Tariff (FIT) - Archaic Term


A government scheme introduced in April 2010 to incentivize renewables micro-generation with guaranteed long-term payments for qualifying generated power. Funded by consumers via suppliers.




Crude products, natural gas, chemicals, or raw material used in a refinery, liquefied natural gas plant, or petrochemical plant for processing into a finished product.




A fiat currency is a national currency that is not pegged to the price of a commodity such as gold or silver. The value of fiat money is largely based on the public’s faith in the currency’s issuer, which is normally that country’s government or central bank. Disclaimer: Some investors believe fiat is based on a Ponzi Scheme.


Fibonacci Retracement


A Fibonacci retracement is a key technical analysis tool that uses percentages and horizontal lines, drawn onto price charts, to identify possible areas of support and resistance. Identifying these areas is useful to traders since it can help them decide when to open and close a position, or when to apply stops and limits to their trades.




Fill is the term used to refer to the satisfying of an order to trade a financial asset. It is the basic act of any market transaction – when an order has been completed, it is often referred to as ‘filled’ or as the order having been executed. Disclaimer: It is worth noting that there is no guarantee that every trade will become filled.


Financial Instrument 


A financial instrument is a monetary contract between two parties, which can be traded and settled. The contract represents an asset to one party (the buyer) and a financial liability to the other party (the seller).


Firm Gas


Gas sold on a continuous and generally long-term contract.


Firm Power


Power-producing capacity intended to be available at all times during the period covered by a guaranteed commitment to deliver, even under adverse conditions.




A price that is neither rising nor falling.




A supply contract between a buyer and seller of a commodity, whereby the seller is assured that it will receive at least some minimum price. This type of contract is analogous to a put option, which gives the holder the right to sell the underlying at a predetermined price.


Flue Gas Desulphurization (FGD)


A technology used for removing sulphur dioxide (SO2) from the exhaust flue gases of fossil fuel power plants. Power plants that have opted-in to the LCPD need to fit FGD equipment in order to comply with SO2 limit values.


Force Majeure


Definition: A contract clause that allows a supplier to forgo his obligation to supply in extreme circumstances, such as political crisis, war, or strikes, that disturb production.


Forward Curve (FC)


The futures market, includes everything beyond the current month going forwards.


Forward Trading


Trading that consists of trades over a longer duration than prompt and spot trading, with contracts for delivery over months, seasons, or years.


Fossil Fuel


Fuel that is formed by natural processes such as the anaerobic decomposition of buried dead organisms. For example, coal, shale, natural gas. 


Front Month


Refers to delivery of a commodity in the month and year to follow.


Fundamental Analysis


Analysis of supply and demand factors that could influence the direction of the price of a commodity.


Futures Contract


An exchange-traded supply contract between a buyer and a seller, whereby the buyer is obligated to take delivery of a fixed amount of a commodity at a predetermined price at a specified location. Futures contracts

are traded exclusively on regulated exchanges and are settled daily based on their current value in the market.




'Financial Services Authority' - The regulator of the financial services industry in the UK.