Contract Purpose
This commodity differential Spread Bet contract allows market participants to:
- Gain exposure to price differentials between European propane and naphtha market
- Hedge against price fluctuations between propane and naphtha sector
- Speculate on the future price movements between propane and naphtha products in Europe
Market Significance
- Regional Indicator: Provides insights into supply and demand dynamics in the European propane and naphtha market
- Price Relationship: Reflects the relative value between European propane and naphtha products
- Market Efficiency: Enhances liquidity and price discovery in the European propane and naphtha market
Trading Benefits
- Flexibility: Offers consecutive forward Tenor Periods for varied trading strategies
- Risk Management: Allows for precise hedging against price volatility in the NGL market
- Market Access: Provides exposure to the European NGL market through a standardised financial instrument
This contract is particularly valuable for energy companies, petrochemical producers, industrial consumers, and commodity traders active in the NGL market. It offers a tool for managing price risks and implementing trading strategies related to NGLs in Europe, with accessibility through the MT5 platform and cash settlement based on Platts assessments.