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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.

WordPress on Azure NGL PRONAP ($/0.01) NGL Europe – Commodity Differential SB

PRONAP ($/0.01) NGL Europe – Commodity Differential SB

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Name & Trade Code

Contract Name PRONAP ($/0.01)
MT5 Code ProNap.s
Contract Classification Commodity Differential SB
Geographical Region Europe

Contract Specification

Sector Energy
Product Group NGL
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 $/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.
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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.
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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.