US Dollar vs Japanese Yen
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 | US Dollar vs Japanese Yen (100K USD) |
| MT5 Code | USDJPY |
| Contract Classification | Spot FX CFD |
Contract Specification
| Sector | FX |
| Tenor Period | Spot Contract |
| Maximum Forward Tenor | Spot Contract |
| Contract Size | 100000 |
| Trading Price Quote | JPY/0.01 |
| Price Digits | 3 |
| Tick Value | 1 |
| Tick Size | 0.001 |
| 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 | C3 LST/C3 FEI($/0.01) |
| MT5 Code | C3_LST/_C3_FEI.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 contract enables market participants to:
- Trade the price spread between US Gulf Coast propane (Mont Belvieu LST) and Far East Index (FEI) propane directly.
- Hedge exposure to the transpacific arbitrage between North American and Asian propane markets.
- Manage risk associated with fluctuations in regional supply, demand, shipping costs, and export economics.
- Implement trading strategies that reflect the shifting value of propane between the US and Asia, driven by factors such as seasonal demand, inventory levels, and freight rates.
Market Significance
Transpacific Benchmark:
The C3 LST/C3 FEI spread is a vital indicator for global LPG and NGL traders, reflecting the economics of moving propane from the US Gulf Coast to Asia. The spread is influenced by US production and export capacity, Asian demand (especially from the petrochemical sector), and shipping market conditions.
Arbitrage and Trade Flows:
This contract is central for assessing the viability of propane exports from the US to Asia. A wide spread often signals profitable arbitrage opportunities, encouraging cargo flows across the Pacific. Conversely, a narrow or negative spread can indicate limited export incentives or high shipping costs.
Market Dynamics Insight:
The price relationship between Mont Belvieu LST and Far East Index propane is shaped by inventory trends, weather-driven demand, infrastructure developments, and global trade patterns. The US is the world’s largest NGL producer and exporter, while Asia is the largest import market, making this spread a key barometer for global LPG trade.
Trading Benefits
- Spread Trading Efficiency: Enables direct trading of the US–Asia propane spread without holding outright positions in both markets.
- Risk Management: Offers an effective hedge for exporters, importers, and traders exposed to transpacific price swings and arbitrage opportunities.
- Price Discovery: Facilitates transparent valuation of the relative value between US and Asian propane, supporting informed trading and hedging decisions.
- Capital Efficiency: Reduces margin requirements compared to trading both legs separately.
This contract is particularly valuable for LPG exporters, importers, trading houses, and petrochemical companies involved in the transpacific NGL trade. It provides a focused tool for managing exposure to one of the most actively traded and closely watched price spreads in the global propane market.