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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(100mt-$/mt)
MT5 Code Nap_E/W
Contract Classification Commodity Differential CFD
Geographical Region Asia/Europe

Contract Specification

Sector Energy
Product Group Naphtha
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 differential contract allows market participants to:

  • Trade the price spread between Asian naphtha and European naphtha directly
  • Hedge exposure to the East-West arbitrage—the price difference between these two major global naphtha markets
  • Manage risk associated with physical cargo movements and arbitrage trading between Asia and Europe
  • Implement strategies that reflect shifting supply-demand balances, freight rates, and regional market dynamics

Market Significance

Arbitrage Benchmark: Provides a transparent and liquid tool for tracking and managing the East-West naphtha price differential, a key driver of global naphtha flows

Regional Market Barometer: Reflects the economics of moving naphtha cargoes between Europe and Asia, influenced by refinery maintenance, petrochemical demand, and shipping costs

Supply Chain Optimisation: Enables refiners, traders, and petrochemical firms to optimise sourcing and sales strategies across both markets

Trading Benefits

  • Spread Trading Efficiency: Allows direct trading of the Asia-Europe naphtha spread without holding outright positions in both markets
  • Risk Management: Offers an effective hedge for market participants exposed to inter-regional price swings
  • Price Discovery: Facilitates transparent valuation of arbitrage opportunities and market imbalances
  • Capital Efficiency: Reduces margin requirements compared to trading both legs separately

This contract is particularly valuable for global trading houses, refiners, and petrochemical companies moving naphtha between Asia and Europe. It provides a focused instrument for managing exposure to one of the most actively traded and closely watched price spreads in the global energy and petrochemical markets.