Back-to-back procurement

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In a back-to-back Procurement ( english back to back , back to back ' ), the supplier covers exactly one at the time the contract is concluded with the delivery quantities agreed with the customer. Back to Back is used to minimize risk in the wholesale and energy sectors.

This has the advantage that the supplier avoids the market price risk by procuring immediately. Risks of a price change during the binding period are taken into account by adding a surcharge to the wholesale prices.

See also

Individual evidence

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