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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.

Barges 0.5/3.5%

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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 Barges 0.5/3.5(100mt-$/mt)
MT5 Code Bgs0.5/Bgs3.5
Contract Classification Commodity Differential CFD
Geographical Region Europe

Contract Specification

Sector Energy
Product Group Fuel Oil
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 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. 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.

The Rdam Barges 0.5% “Hi5” contract is a commodity CFD (Contract for Difference) in the Fuel Oil group that represents the price differential between Marine Fuel 0.5% FOB Rotterdam Barges and 3.5% FOB Rotterdam Barges.

Contract Purpose

This product differential contract allows market participants to:

  • Hedge exposure to the price spread between low-sulphur and high-sulphur fuel oil in Rotterdam
  • Speculate on the impact of IMO 2020 regulations on fuel oil prices
  • Manage risk related to the adoption of scrubber technology in the shipping industry

Market Significance

  • IMO 2020 Impact: Reflects the price differential between compliant and non-compliant fuels under the International Maritime Organization’s sulphur cap
  • Scrubber Economics: Provides insights into the financial viability of installing exhaust gas cleaning systems (scrubbers) on ships
  • Regional Fuel Dynamics: Captures the supply-demand balance for different fuel grades in the key bunkering hub of Rotterdam

Trading Benefits

  • Spread Risk Management: Allows traders to focus on the relative price movements between low-sulphur and high-sulphur fuel oils
  • Market Access: Provides exposure to both IMO 2020-compliant and non-compliant fuel markets in Rotterdam
  • Flexibility: Enables various trading strategies related to the marine fuel transition

This contract is particularly valuable for shipowners, bunker suppliers, refineries, and commodity traders active in the European marine fuel market. It offers a powerful tool for managing price risks and implementing sophisticated trading strategies in the evolving landscape of marine fuels post-IMO 2020.

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 Barges 0.5/3.5($/0.01)
MT5 Code Bgs0.5/Bgs3.5.s
Contract Classification Commodity Differential SB
Geographical Region Europe

Contract Specification

Sector Energy
Product Group Fuel Oil
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 $/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. 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.

The Rotterdam Barges 0.5% “Hi5” contract is a commodity SB (Spread Bet) in the Fuel Oil group that represents the price differential between Marine Fuel 0.5% FOB Rotterdam Barges and 3.5% FOB Rotterdam Barges.

Contract Purpose

This product differential contract allows market participants to:

  • Hedge exposure to the price spread between low-sulphur and high-sulphur fuel oil in Rotterdam
  • Speculate on the impact of IMO 2020 regulations on fuel oil prices
  • Manage risk related to the adoption of scrubber technology in the shipping industry

Market Significance

  • IMO 2020 Impact: Reflects the price differential between compliant and non-compliant fuels under the International Maritime Organization’s sulphur cap
  • Scrubber Economics: Provides insights into the financial viability of installing exhaust gas cleaning systems (scrubbers) on ships
  • Regional Fuel Dynamics: Captures the supply-demand balance for different fuel grades in the key bunkering hub of Rotterdam

Trading Benefits

  • Spread Risk Management: Allows traders to focus on the relative price movements between low-sulphur and high-sulphur fuel oils
  • Market Access: Provides exposure to both IMO 2020-compliant and non-compliant fuel markets in Rotterdam
  • Flexibility: Enables various trading strategies related to the marine fuel transition

This contract is particularly valuable for shipowners, bunker suppliers, refineries, and commodity traders active in the European marine fuel market. It offers a powerful tool for managing price risks and implementing sophisticated trading strategies in the evolving landscape of marine fuels post-IMO 2020.