Great Britain Pound vs Swiss Franc
Contract Details
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 | Great Britain Pound vs Swiss Franc (100K GBP) |
| MT5 Code | GBPCHF |
| Contract Classification | Spot FX CFD |
Contract Specification
| Sector | FX |
| Tenor Period | Spot Contract |
| Maximum Forward Tenor | Spot Contract |
| Contract Size | 100000 |
| Trading Price Quote | CHF/0.0001 |
| Price Digits | 5 |
| Tick Value | 1 |
| Tick Size | 1.0E-5 |
| Minimum Volume | 0.01 |
| Volume Steps [Lots] | 0.01 |
Expiry Trading Overview
| Trading Hours | Sun 10:00pm - Fri 10:00pm |
| Quoting Hours | Sun 10:00pm - Fri 10:00pm |
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 | Jet CIF NWE/LSGO($/0.01) |
| MT5 Code | Jet_NWE/LSGO.s |
| Contract Classification | Commodity Differential SB |
Contract Specification
| Sector | FX |
| 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 |
| Trading Price Quote | $/mt |
| Price Digits | 2 |
| Tick Value | 1 |
| Tick Size | 0.01 |
| Minimum Volume | 1 |
| Volume Steps [Lots] | 0.01 |
Expiry Trading Overview
| Trading Hours | |
| Quoting Hours |
Contract Purpose
This differential contract allows market participants to:
- Trade the price spread between European jet fuel (Jet CIF NWE) and European low sulphur gasoil (LSGO) directly
- Hedge exposure to the margin between jet fuel and gasoil, two of the most important middle distillates in Europe
- Manage risk associated with shifts in demand, supply, and refining economics for these products
- Implement trading strategies that reflect the close relationship and volatility between jet fuel and gasoil prices
Market Significance
Distillate Margin Benchmark: This contract acts as a transparent tool for tracking and managing the profitability of producing jet fuel versus gasoil in Europe.
Aviation and Transport Focus: Jet fuel and gasoil are both critical to the transport sector—airlines, hauliers, and refiners all rely on this spread to manage operational costs and revenues.
Market Dynamics Insight: The spread reflects changes in seasonal demand, refinery maintenance, and supply disruptions, making it a key indicator for the European energy market.
Trading Benefits
- Margin Management: Allows airlines, refiners, and traders to hedge or speculate on the jet-gasoil spread with a single contract
- Efficient Risk Control: Directly addresses the risk of price movements between two closely linked distillate products
- Operational Flexibility: Supports both physical market hedging and speculative trading strategies
- Capital Efficiency: Reduces margin requirements compared to holding separate positions in both legs
This contract is especially valuable for airlines managing jet fuel costs, refiners optimising production, and trading firms active in the European distillates market. It provides a focused tool for managing the spread between these two vital benchmarks, helping participants to stabilise margins and respond quickly to market changes.