Visco Fuel Oil Asia – Commodity Differential
Contract for Difference
Spread Bet
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 | Visco(100mt-$/mt) | |
| MT5 Code | Visco | |
| Contract Classification | Commodity Differential CFD | |
| Geographical Region | Asia |
Contract Specification
| Sector | Energy | |
| Product Group | Fuel Oil | |
| Tenor Period | Consecutive individual whole calendar months, e.g. Jun 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 June 2025 for Jun 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 June 2025 for Jun 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. |
The Visco contract is a commodity CFD (Contract for Difference) in the Fuel Oil group that represents the price differential between Fuel Oil 180 CST Singapore and Fuel Oil 380 CST Singapore.
Contract Purpose
This product differential contract allows market participants to:
- Hedge exposure to the price spread between 180 CST and 380 CST fuel oil in Singapore
- Speculate on the relative value of different viscosity grades of fuel oil
- Manage risk related to blending operations and refinery output
Market Significance
- Blending Economics: Reflects the value of blending components used to produce different viscosity grades of fuel oil
- Refinery Operations: Provides insights into the economics of producing various fuel oil grades
- Shipping Industry Impact: Captures the price relationship between fuel grades used in different types of marine engines
Trading Benefits
- Spread Risk Management: Allows traders to focus on relative price movements between fuel oil grades
- Market Access: Provides exposure to Singapore’s key fuel oil benchmarks
- Flexibility: Enables various trading strategies related to fuel oil blending and production
This contract is particularly valuable for refineries, shipping companies, trading houses, and financial institutions active in the Asian fuel oil market. It offers a tool for managing price risks and implementing sophisticated trading strategies related to different viscosity grades of fuel oil in Singapore.
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 | Visco($/0.01) | |
| MT5 Code | Visco.s | |
| Contract Classification | Commodity Differential SB | |
| Geographical Region | Asia |
Contract Specification
| Sector | Energy | |
| Product Group | Fuel Oil | |
| Tenor Period | Consecutive individual whole calendar months, e.g. Jun 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. 30 June 2025 for Jun 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 June 2025 for Jun 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. |
The Visco contract is a commodity SB (Spread Bet) in the Fuel Oil group that represents the price differential between Fuel Oil 180 CST Singapore and Fuel Oil 380 CST Singapore.
Contract Purpose
This product differential contract allows market participants to:
- Hedge exposure to the price spread between 180 CST and 380 CST fuel oil in Singapore
- Speculate on the relative value of different viscosity grades of fuel oil
- Manage risk related to blending operations and refinery output
Market Significance
- Blending Economics: Reflects the value of blending components used to produce different viscosity grades of fuel oil
- Refinery Operations: Provides insights into the economics of producing various fuel oil grades
- Shipping Industry Impact: Captures the price relationship between fuel grades used in different types of marine engines
Trading Benefits
- Spread Risk Management: Allows traders to focus on relative price movements between fuel oil grades
- Market Access: Provides exposure to Singapore’s key fuel oil benchmarks
- Flexibility: Enables various trading strategies related to fuel oil blending and production
This contract is particularly valuable for refineries, shipping companies, trading houses, and financial institutions active in the Asian fuel oil market. It offers a tool for managing price risks and implementing sophisticated trading strategies related to different viscosity grades of fuel oil in Singapore.
