Skip to main content

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.

WordPress on Azure Crude Dated to Frontline Brent ($/0.01) Crude Europe – Commodity Differential SB

Dated to Frontline Brent ($/0.01) Crude Europe – Commodity Differential SB

Trade with the world's #1 oil derivatives liquidity provider

Name & Trade Code

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

Contract Specification

Sector Energy
Product Group Crude
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 $/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 View document

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 “DFL” Brent contract is a commodity Spread Bet (SB) in the Crude group that represents the price differential between Dated Brent and Brent 1st Line futures.

Contract Purpose

This product differential contract allows market participants to:

  • Hedge exposure to the price spread between Dated Brent and Brent 1st Line futures
  • Manage basis risk between physical and futures markets
  • Implement sophisticated hedging strategies for crude oil transactions

Market Significance

  • Price Discovery: Provides insights into the relationship between physical and futures oil markets
  • Benchmark Indicator: Serves as a key reference for the short-term oil market structure
  • Risk Management: Offers a tool for managing the basis risk between physical and paper markets

Trading Benefits

  • Spread Risk Management: Allows traders to focus on relative price movements between physical and futures markets
  • Market Access: Provides exposure to both physical and futures oil markets
  • Flexibility: Enables various trading strategies, from simple hedges to more complex multi-leg trades

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