Bids and clearing price

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Bids and clearing price

Joran
Hi,

Could you please help me understand the outcome of the periodic double auction (PDA).

My question is, let say a broker's bid got cleared (i.e. the bid is to the left of the clearing price), is the broker's account charged

1) the price he bidded * energy_requested,
2) clearing_price * energy_requested,
3) the matching asked price * energy_requested, or
4) in case the bid was matched by more than one ask, the average of the asks

?

Thanks.
Joran
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Re: Bids and clearing price

grampajohn
Administrator
Joran wrote
Hi,

Could you please help me understand the outcome of the periodic double auction (PDA)?

My question is, let say a broker's bid got cleared (i.e. the bid is to the left of the clearing price), is the broker's account charged

1) the price he bidded * energy_requested,
2) clearing_price * energy_requested,
3) the matching asked price * energy_requested, or
4) in case the bid was matched by more than one ask, the average of the asks
#2 is almost exactly right. It's the clearing price times the energy cleared for your bid. This is the bid quantity unless (a) your bid was the last one cleared, and (b) the last ask to be cleared did not completely fill your bid quantity.

Does this make sense?

John
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Re: Bids and clearing price

Joran

Totally.

Thanks a lot.