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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 Naphtha Naphtha E/W Naphtha Asia/Europe – Commodity Differential CFD

Naphtha E/W Naphtha Asia/Europe – Commodity Differential CFD

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Name & Trade Code

Contract Name Naphtha E/W
MT5 Code Naphtha_E/W
Contract Classification Commodity Differential CFD
Geographical Region Asia/Europe

Contract Specification

Sector Energy
Product Group Naphtha
Tenor Period Up to 24 consecutive forward Tenor Periods available
Maximum Forward Tenor Up to 24 consecutive forward Tenor Periods available
Contract Size 100
Contract Unit
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.
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Expiry Trading Overview

Contract Expiry Date The last trading day of the expiring Tenor Period (i.e. 31 March 2025 for Mar 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. 24 March 2025 for Mar 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 settlement assessment 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.
MOC Haircut

The Naphtha East West contract is a commodity CFD (Contract for Difference) in the Naphtha group that represents the price differential between Naphtha C+F Japan and Naphtha CIF NWE Cargoes.

Contract Purpose

This product differential contract allows market participants to:

  • Hedge exposure to the price spread between Asian and European naphtha markets
  • Speculate on regional price differentials between Japan and Northwest Europe
  • Manage risk related to arbitrage opportunities between Asian and European naphtha markets

Market Significance

  • Global Benchmark: Reflects the relationship between key naphtha benchmarks in Asia and Europe
  • Arbitrage Indicator: Captures potential price discrepancies between two major naphtha trading hubs
  • Petrochemical Industry Impact: Provides insights into the relative economics of naphtha as a feedstock in different regions

Trading Benefits

  • Cross-Market Exposure: Provides simultaneous access to both Asian and European naphtha markets
  • Risk Management: Allows hedging against price volatility between different regional naphtha benchmarks
  • Spread Trading: Enables traders to capitalise on price differentials between Japan and Northwest Europe naphtha markets

This contract is particularly valuable for petrochemical companies, refineries, trading houses, and financial institutions active in the global naphtha market. It offers a powerful tool for managing price risks and implementing sophisticated trading strategies that account for the relationship between naphtha prices in different regions.