The New York Mercantile Exchange is a US-based futures exchange that deals with energy futures, as well as options in gasoline, crude oil, propane, natural gas, electricity and heating oil, and even base and precious metals. It is the largest physical commodity futures exchange in the world and is considered the premier forum for precious metals and energy trades. Traders who are looking for liquidity alternatives that can counter their bond and stock investments normally flock to the Nymex.
To start trading electricity futures on the Nymex, you have to first open an account with a Nymex accredited, series 3, commodity futures broker. This broker will be your point of entry into the electricity market, so you have to make sure that you make the right choice. By ‘right broker’, it is meant that your representative should have ample experience and background in the electricity futures trading environment. He should have a considerable level of expertise in the market and, preferrably, operates in just the electricity market, in order to avoid potential conflicts of interest.