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What is the significance of “bid week”? How many days in “bid week”?

What is the significance of “bid week”? How many days in “bid week”?

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In the natural gas market, the largest volume of trading occurs in the last week of every month. This week is called the "bid week" and is usually the five business days immediately preceding the first of the month.

During this week, producers are trying to sell their core production and consumers are trying to buy for their core natural gas needs for the upcoming month. This allows buyers and sellers to negotiate and lock in a price for physical delivery of natural gas in the following month, effectively minimizing the risk and uncertainty associated with the daily spot market.

The average prices set during bid week are commonly the prices used in physical contracts.

There are five business days in a "bid week".

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