Ways to purchase fuel

There are three types of fuel purchases you can make on DTN Exchange:

  • Prompt Offers represent offers from partner sellers on currently available products at the currently published real-time price.

  • Forward Offers represent offers from partner sellers on products that will be available on specified months, for specified quantities, and for a specified price in the future. The quantities and price per gallon for product may be the same or differ from month to month. They must be consecutive months.

  • Flex offers represent a multi-month Forward Market Order. The buyer specifies an amount of product to be purchased as well as a sequential month range for which they can pull product.

Within each of these three types, there are two ways you can make a fuel purchases on the Exchange:

  • Market Orders submit an order on a product from a partner seller at the seller’s offered price. Once the order is placed and other requirements are met, the trade is matched and becomes final.

    • Prompt Market Order: an order for currently available product at the currently published real-time price as offered by a seller partner.

    • Forward Market Order: an order for products available for specified amounts and a specified price per gallon on consecutive future months, as offered by a seller partner.

    • Flex Market Order: an order for products available for specified amounts and a specified price per gallon on non-consecutive future months, as offered by a seller partner.

  • Bids allows you to submit a price lower than the seller’s offer. It is up to the seller to accept or deny the bid. If the trade price comes down to your bid price and the seller’s requirements are met, a market order is automatically placed instead.

Where to purchase fuel

Here are the following pages that you can make Market Orders or Bids:

  • Prompt Offers: Buyer > Prompt Offers > Offers/Orders

  • Forward Offers: Buyer > Forward Offers > Offers/Orders

  • Flex Offers: Buyer > Flex Offers > Offers/Order

Market Orders versus Bids

Market Orders

Market Orders are used for placing an order at the same price as offered by the partner seller. Buyers can place a market order at the seller’s offer price, as long as the following requirements are met:

  • The seller has set the offer to be available for market orders.

  • The order quantity must be equal to or greater than the minimum order quantity set by the seller.

  • The order quantity is in the increments that have been specified by the seller.

  • The seller must have sufficient inventory to fill the order.

NOTE:  If the seller does not have adequate inventory listed on DTN Exchange to fill a market order, the buyer has the option to place a bid for the seller’s remaining inventory. The bid price on the remaining inventory is determined by the seller’s current offer price. Once a trade is matched, it can only be canceled through DTN Exchange by the seller.

Once you have confirmed your market order, the trade happens instantly. DTN Exchange system performs the following:

  • Updates the Status column on the Manage Bids tab to match.

  • Sends a trade notification of the matched trades to both the buyer and seller.

Bids

You can bid below the seller’s offer price to take advantage of a softening market or quantity discounts. The status of a bid is active on DTN Exchange until it matches or meets the expiration date and time that you specified when creating the bid. Once the bid has been accepted the status becomes matched. While the status is active, you can edit or cancel the bid.

Depending on how the seller has set up their DTN Exchange, a bid can match into a market order when either the seller chooses to accept the bid manually, or when the seller’s offer price moves down to equal the bid price.

 

Category: Exchange Buyer