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Are power contracts traded on any stock markets ? What about OTC markets ? I ask about the derivatives where payoff is some exponential function of difference between strike and spot price.

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Power contracts were always the domain of the theoreticians. I never saw one go through our exotics desk (though our software would have supported it, because it was so darn easy to put in the library). – Brian B Apr 9 '14 at 1:25

Stock markets? Not that I know of. I would say ICE and NYMEX have OTC power contracts but I believe they have pretty big margins and account minimums for that kind of contract. Just at looking at today's settlements I see very little traded on Clearport.

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Qbik is thinking about options as described here. The power refers to a power function, not electricity. – Bob Jansen Aug 7 '14 at 19:43

Levered ETFs have the behavior similar to power contracts, but there aren't any listed options. Some banks should be able to sell you OTC contracts, although I doubt you can do any arbitrage like trade if you are hoping to do - the bid and ask will kill you!

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