People unfamiliar with markets are often surprised how often there are serious issues. It’s not uncommon for trades from a specific time period to be invalidated.
Or is there some other limitation that prevents this?
In Australia, we’re moving towards dynamic operating envelopes for solar and other “distributed energy resources”. That potentially includes EVs and ACs.
The idea is the solar inverter is sent a dynamic stream of operating constraints by the distribution business based on network conditions.
It’s already being piloted in places like South Australia, which has very high solar penetration. Regulations are also moving towards requiring smart meters at all households (already the case in Victoria) and all new inverters be network connected.
It's telling they regulate the price and won't allow it to go "too low", just like they halt trading on the stock exchange if things go down too much.
Free market my backside - can't let those profits dip!
It's not fully clear to me how the market work as a whole. I learnt that generators may have swap contracts with retailers and big users, which, based on my understanding, can distort the price to arbitrarily low, because generators get paid for the difference from the other side regardless of spot price, so they can set the lowest possible to ensure they can dump their power to the grid.
Also when it's predicted to be this low (or that high), there is likely some operations (market or not) behind the scenes to level the price. Usually when it gets to the time, the actual spot price has been in a reasonable range.
Now they stop trading for (15?) minutes to let everyone make sure it's real and not their trading algorithms being stupid.
It's not about not letting the stocks crash to far, it's about making sure the pricing is accurate.
The Federal Reserve however is a different story. :)
If that were true, they would do the same thing if it was going up "too quickly".
To the surprise of nobody, they don't.
https://www.nasdaq.com/articles/all-about-lulds
Don't think the entire market has ever gotten unreasonably high due to a trading error.
Imagined you could buy gas wholesale for a dollar a gallon and the price floor retail was two…. Guranteed to make money
It's funny, your comment reads like a business has some kind of right to make a profit, rather than letting the free market figure out if it should exist or not.
That's not a price floor, it would be a price ceiling on the second level supplier, and they could just choose not to sell. There's no way this scenario could happen except for subsidies and mandated production like the Defense Production Act.
> It's funny, your comment reads like a business has some kind of right to make a profit, rather than letting the free market figure out if it should exist or not.
You seem very confused.