Hungarian Energy Exchange: HUPX

HUPX (Hungarian Power Exchange) was launched in 2010 as a key platform for energy trading in Hungary. The establishment of this energy exchange is considered a major step in the liberalization and transparency of energy markets. HUPX plays an important role in determining energy prices by providing a market where energy supply and demand meet efficiently.

Establishment Process and Importance of HUPX

The establishment of HUPX was a strategic step towards harmonization of the Hungarian energy market with EU norms. In this process, the development of an infrastructure to meet the needs of market players was prioritized. With the launch of HUPX, the Hungarian energy market has become more competitive and transparent. This allowed for more accurate energy price formation and offered more energy trading opportunities to energy trading market firms.

HUPX has become an important hub not only for Hungary but also for regional energy trading. This exchange contributes to increasing the security of energy supply, while at the same time helping to optimize energy trade. This makes it possible for players in the energy sector to act in a more flexible and dynamic structure.

HUPX Intraday and Day-ahead Markets

HUPX offers the opportunity to trade in two main markets for energy trading: Intraday and Day-Ahead markets. These two markets are designed to provide flexibility in energy trading and manage the supply-demand balance more effectively.

• Day-Ahead Market: This market is a platform for trading energy for the following day. Participants determine their energy needs for the following day in advance and submit bids. This market plays a critical role in determining energy prices and allows market players to make more strategic decisions.

• Intraday Market: This market is used for shorter-term transactions in energy trading. Market participants trade in this market to meet their immediate energy needs. This market plays a vital role in balancing energy supply and demand, especially during periods of high demand fluctuations.

According to HUPX data, the total trading volume on HUPX Spot in 2023 was 32,904,158 MWh, up 5% compared to 31,424,745 MWh in 2022. The average daily volume was 90,148 MWh, with the highest daily volume of 121,779 MWh on the delivery day of December 12. HUPX Spot ended the year with 76 DAM and 60 IDM members.

The transactions made on HUPX and the importance of Hungary in energy trade are increasing in 2024 as it has been every year. According to the monthly reports released by HUPX, the total trading volume on the HUPX Spot market in July was 3,586,484 MWh, up 1.1% compared to 3,546,249 MWh in June. The average daily volume was 115,693 MWh, with the highest daily volume of 129,702 MWh on the delivery day of July 17. HUPX Spot ended the month with 85 DAM and 70 IDM members.

HUPX Integration and Offer Types

HUPX has taken several steps to integrate with European energy markets. Thanks to this integration, transactions on HUPX are harmonized with other European energy exchanges. This makes it possible to trade energy efficiently across a wider geography.

When trading on HUPX, market participants can submit different types of offers. These bids are an important factor in determining energy prices and formulating trading strategies. For example, limit bids allow the participant to trade within a set price range, while market orders make it possible to trade instantly at the best available price.

The HUPX Energy Exchange plays a critical role for energy trading in Hungary and the region. With both intraday and day-ahead markets, it manages to keep energy supply and demand in balance, ensuring that energy prices are set accurately and transparently.

The Key to Powerful Trading in Energy Markets with V-Market

Energy markets are known for their ever-changing dynamics and uncertainty. Understanding and effectively managing this complex structure is a major challenge for energy trading companies. This is where V-Market software comes in. V-Market offers market players unique features such as multi-market management, real-time data streaming and algorithmic trading. With the infrastructure that V-Market provides to energy traders, writing trading strategies is a breeze. With the ease of the algorithm, it is very easy to manage the orders set in the intraday and day-ahead market.

Power in Energy Markets: Day-Ahead and Intraday Markets

V-Market provides full integration into various energy trading platforms such as day-ahead and intraday markets. It seamlessly integrates with leading energy exchanges such as EPEX SPOT, Nord Pool, IBEX, HUPX and EPİAŞ, enabling companies to trade on different markets simultaneously. This allows energy companies to optimize pricing, manage the supply and demand balance more effectively and diversify risk by taking advantage of regional differences.

V-Market is an indispensable tool for companies trading in the energy markets. With advanced algorithmic trading capabilities, real-time data streaming and multi-market management, V-Market provides the highest level of efficiency and profitability in energy trading. Meet V-Market’s solutions to navigate the complexity of energy markets and stay ahead of the competition!

Writer: Kartal SEZER