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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.

Onyx Markets NGL C3 E/W NGL Asia/Europe – Commodity Differential CFD

C3 E/W NGL Asia/Europe – Commodity Differential CFD

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Name & Trade Code

Contract Name C3 E/W(100mt-$/mt)
MT5 Code C3_E/W
Contract Classification Commodity Differential CFD
Geographical Region Asia/Europe

Contract Specification

Sector Energy
Product Group NGL
Tenor Period Consecutive individual whole calendar months, e.g. May 25
Maximum Forward Tenor Up to 18 consecutive forward Tenor Periods available
Contract Size 100
Contract Unit mt
Trading Price Quote $/mt
Price Digits 2
Currency USD
Tick Value 1
Tick Size 0.01
Minimum Volume 1
Volume Steps [Lots] 0.01
Settlement Positions held into pricing month will be split into the constituent legs and then follow the settlement methodology for Outrights. i.e. Arithmetic mean of Settlement Prices throughout expiry month.
Margins Download a summary or detailed document with tiers.

Expiry Trading Overview

Contract Expiry Date The last trading day of the expiring Tenor Period (i.e. 30 May 2025 for May 25 Tenor Period)
Last Trading Day (for new open positions) Five working days prior to the Contract Expiry Date for the Tenor Period (i.e. 23 May 2025 for May 25 Tenor Period)
Last Trading Day (for closing position in that Tenor Period) The Contract Expiry Date of the relevant Tenor Period

Tenor Period Settlement Valuation Process

Open Volume The net open volume for the expiring Tenor Period
Daily Settlement Value Market-on-Close – The daily assessment settlement time, e.g. 4:30 pm for European contracts
Daily Settlement Volume Each day during Tenor Period, the remaining Open Volume reduces by the equivalent of 1/ (number of pricing days in the Tenor Period, including today if prior to Market-on-Close) and be settled at Daily Settlement Value
Final Settlement Price Positions held into pricing month will be split into the constituent legs and then follow the settlement methodology for Outrights. i.e. Arithmetic mean of Settlement Prices throughout expiry month.

Contract Purpose

This contract enables market participants to:

  • Trade the price spread between Far East propane and Northwest European (NWE) propane directly.
  • Hedge exposure to the East-West arbitrage, reflecting the price differential between Asian and European propane markets.
  • Manage risks associated with shipping costs, regional supply-demand imbalances, and global trade flow volatility.
  • Implement strategies that capitalise on shifting market fundamentals, such as seasonal demand variations or disruptions in production/transport.

Market Significance

Global Arbitrage Benchmark:
The C3 E/W spread is a critical indicator for international LPG traders, capturing the economics of moving propane between Asia and Europe. It reflects the balance between Asian import demand and European supply dynamics.

Trade Flow Driver:
The spread determines the viability of intercontinental propane shipments. A widening differential often incentivises cargo movements from Europe to Asia (or vice versa), while a narrow spread may signal limited arbitrage opportunities.

Regional Market Insight:
This contract provides visibility into factors such as:

  • Asian petrochemical demand cycles.
  • European heating season requirements.
  • Freight rate fluctuations impacting transportation costs.

Trading Benefits

  • Arbitrage Efficiency: Execute East-West propane spread strategies with a single contract, bypassing the complexity of managing separate regional positions.
  • Risk Mitigation: Hedge against price volatility caused by regional supply shocks (e.g., refinery outages, geopolitical tensions).
  • Capital Efficiency: Lower margin requirements compared to maintaining outright positions in both markets.
  • Market Accessibility: Gain exposure to global propane trade dynamics without physical cargo involvement.

Target Users

This contract is vital for:

  • Commodity traders specialising in energy arbitrage.
  • LPG importers/exporters managing transcontinental shipments.
  • Refiners and petrochemical producers optimising feedstock sourcing.
  • Financial institutions seeking portfolio diversification through energy spreads.

By bridging Asian and European propane markets, this contract supports strategic decision-making in a sector where price disparities drive billion-dollar trade flows.