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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 Crude Dated/Frontline Brent

Dated/Frontline Brent

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A CFD is a financial derivative that allows traders to speculate on the price movement of an asset without owning it. The trader enters into a contract with a broker, agreeing to exchange the difference in the asset's price from the time the contract is opened to when it is closed.

Name & Trade Code

Contract Name DFL(100bbl-$/bbl)
MT5 Code DFL
Contract Classification Commodity Differential CFD
Geographical Region Europe

Contract Specification

Sector Energy
Product Group Crude
Tenor Period Consecutive individual whole calendar months, e.g. Aug 25
Maximum Forward Tenor Up to 18 consecutive forward Tenor Periods available
Contract Size 100
Contract Unit bbl
Trading Price Quote $/bbl
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. 29 August 2025 for Aug 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. 22 August 2025 for Aug 25 Tenor Period)
Last Trading Day (for closing position in that Tenor Period) The Contract Expiry Date of the relevant Tenor Period
Trading Hours 8:00am - 5:30pm London time
Quoting Hours 8:00am - 6:00pm London time

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

The DFL Crude Europe contract is designed to allow market participants to:

  • Trade the price difference between Dated Brent (the physical North Sea crude oil benchmark) and Brent 1st Line futures (the front-month financial futures contract)
  • Hedge exposure to the spread between the physical and financial oil markets in Europe
  • Manage basis risk that arises when physical oil transactions are priced against Dated Brent, but hedging is done using Brent futures
  • Implement advanced hedging and trading strategies that require precise alignment between spot and futures price movements

Market Significance

Physical-Financial Market Link:
This contract is central to the European crude oil market, as it reflects the relationship between the spot (physical) price of North Sea crude and the futures price used for financial hedging. The DFL spread is heavily influenced by the activities of physical market participants in the North Sea and is a key indicator of short-term market structure.

Benchmark for Basis Risk:
The DFL is widely used by oil producers, refiners, and trading houses to manage the risk that arises from differences between physical and futures pricing. It helps ensure that hedges are more effective and that cash flows are stabilised, even when the spot and futures markets diverge.

Price Discovery and Transparency:
By focusing on the differential between Dated Brent and Brent 1st Line futures, the contract provides valuable insight into market sentiment, supply and demand dynamics, and the convergence (or divergence) between physical and paper markets.

Trading Benefits

  • Spread Risk Management: Enables focused risk management and trading of the basis between physical and futures crude oil prices
  • Market Access: Provides exposure to both the physical and financial sides of the Brent complex in a single instrument
  • Flexibility: Supports a range of trading strategies, from straightforward hedges to more complex multi-leg positions involving physical cargoes and futures contracts

This contract is particularly valuable for oil producers, refiners, trading houses, and financial institutions active in both the physical and futures oil markets. It offers a powerful and flexible tool for managing complex price risks and implementing trading strategies that account for the unique dynamics of the European crude oil sector.

A spread bet is a form of wagering on the price movement of an asset, where the trader bets on whether the price will rise or fall. The profit or loss is determined by the difference between the opening and closing prices.

Name & Trade Code

Contract Name DFL($/0.01)
MT5 Code DFL.s
Contract Classification Commodity Differential SB
Geographical Region Europe

Contract Specification

Sector Energy
Product Group Crude
Tenor Period Consecutive individual whole calendar months, e.g. Aug 25
Maximum Forward Tenor Up to 18 consecutive forward Tenor Periods available
Contract Size 100
Contract Unit
Trading Price Quote $/bbl
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. 29 August 2025 for Aug 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. 22 August 2025 for Aug 25 Tenor Period)
Last Trading Day (for closing position in that Tenor Period) The Contract Expiry Date of the relevant Tenor Period
Trading Hours 8:00am - 5:30pm London time
Quoting Hours 8:00am - 6:00pm London time

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

The DFL Crude Europe contract is designed to allow market participants to:

  • Trade the price difference between Dated Brent (the physical North Sea crude oil benchmark) and Brent 1st Line futures (the front-month financial futures contract)
  • Hedge exposure to the spread between the physical and financial oil markets in Europe
  • Manage basis risk that arises when physical oil transactions are priced against Dated Brent, but hedging is done using Brent futures
  • Implement advanced hedging and trading strategies that require precise alignment between spot and futures price movements

Market Significance

Physical-Financial Market Link:
This contract is central to the European crude oil market, as it reflects the relationship between the spot (physical) price of North Sea crude and the futures price used for financial hedging. The DFL spread is heavily influenced by the activities of physical market participants in the North Sea and is a key indicator of short-term market structure.

Benchmark for Basis Risk:
The DFL is widely used by oil producers, refiners, and trading houses to manage the risk that arises from differences between physical and futures pricing. It helps ensure that hedges are more effective and that cash flows are stabilised, even when the spot and futures markets diverge.

Price Discovery and Transparency:
By focusing on the differential between Dated Brent and Brent 1st Line futures, the contract provides valuable insight into market sentiment, supply and demand dynamics, and the convergence (or divergence) between physical and paper markets.

Trading Benefits

  • Spread Risk Management: Enables focused risk management and trading of the basis between physical and futures crude oil prices
  • Market Access: Provides exposure to both the physical and financial sides of the Brent complex in a single instrument
  • Flexibility: Supports a range of trading strategies, from straightforward hedges to more complex multi-leg positions involving physical cargoes and futures contracts

This contract is particularly valuable for oil producers, refiners, trading houses, and financial institutions active in both the physical and futures oil markets. It offers a powerful and flexible tool for managing complex price risks and implementing trading strategies that account for the unique dynamics of the European crude oil sector.