Natural Gas Futures Trading Basics

5 stars based on 62 reviews

Among the various contracts available in the energy futures markets, there is no doubt that Oil futures how to trade natural gas futures the most popular. However, Natural Gas futures also hold on its own offering a different flair and bringing its own uniqueness. This brief guide gives you all the details on trading the Natural gas futures contracts with Orbex.

The main purpose of How to trade natural gas futures gas is in heating both industrial and domestic and power generation. Natural gas is a fossil fuel and is naturally occurring with Methane gas being the primary component and also includes Carbon Dioxide and Nitrogen. Natural gas is a byproduct of Oil. As with any commodity, it is the supply and demand that determines the price of Natural gas.

On the supply side, the main factors affecting Natural gas are:. The US is a net importer of natural gas. Natural gas prices are affected by economic reports.

Of these, the most important reports to watch for are:. Natural gas is denoted by its ticker symbol NG followed by the year and the contract expiry month. For example, NG6X refers to a natural gas futures contract for with the expiry month X.

NG is priced in 3 decimals at Orbex. Therefore, if you were to trade 1 standard lot of NG futures, a 0. You can, however, trade for a smaller contract size of 0. The NG contract comes with an expiration close only date.

All open trades are automatically closed at John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics. Factors affecting Natural gas prices As with any commodity, it is the supply and demand that determines the price of Natural gas.

On the supply side, the main factors affecting Natural gas are: Change in the Natural gas production How to trade natural gas futures of imports and exports Amount of natural gas held in storage facilities On the demand side, the factors affecting natural gas are: US natural gas imports, Economic reports affecting Natural gas prices how to trade natural gas futures the short term Natural gas prices are affected by economic reports.

Of these, the most important reports to watch for are: Weather disruptions such as hurricanes can affect the supply of natural gas especially how to trade natural gas futures pipelines are in the line of sight.

Besides the weather, seasonality also plays a bigger role. The industrial sector which is a major consumer of natural gas also plays an important role on the demand side. Similar to crude oil, natural gas is stored as LNG, and the weekly inventory report can offer short term trading opportunities Competition with other fuels coal, petroleum: Large industries often have the capability to switch between one form of fuel to another for power generation or other purposes.

When the cost of other fuels falls, demand for natural gas decreases, leading to lower prices and similarly when the cost of competing fuels increase relative to natural gas, the demand for natural gas increases.

Competing fuels include coal and petroleum Natural gas — Trading specifications Natural gas is denoted by its ticker symbol NG followed by the year and the contract expiry month. Natural gas futures contract at Orbex. Visited times, 3 visits today. Subscribe to Orbex Blog.

Options trading calls and puts

  • Sell options after hours

    Ig options

  • Tradeking option

    Australian futures trading hours

Lease option investors

  • Forex broker list 2015

    Call option profit calculator

  • Currency option market in india

    Binary options withdrawal problems trading follow binary trading option signals

  • Winning binary signals autotrader review

    Ez handler binarer autopzioni

Option out of the money example

47 comments 60 second binary options demo account 10 minute strategy

Day trade stocks canada

Why do you recommend this news source? S dollars and cents per mmBtu. The following is a table with Natural Gas futures delivery dates and resultant tickers for For an explanation on commodity tickers see commodity ticker construction.

If any contract is traded, bid, or offered at the limit for five minutes, trading is halted for five minutes. There will be no maximum price fluctuation limits during any one trading session. Trading terminates three business days prior to the first calendar day of the delivery month. Pipeline specifications in effect at time of delivery. From the makers of. Day 52 Wk Vol Avg Vol. Unable to complete your request.

Please refresh your browser. See more recent news. CME Group, the world's leading and most diverse derivatives marketplace, today announced it reached a daily trading volume record for Henry Hub Natural Gas futures on January 12, , of 1,, contracts - surpassing the 1 million milestone US natgas futures climb as storage withdrawals meet expectations. Suggest other news sources for this topic. Retrieved from " http: Track your investments automatically. By continuing past this page, you agree to abide by these terms.

Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy.

Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners.

The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest. This article describes a futures contract with a discrete termination or delivery date. View articles referencing this futures contract. Contents 1 Delivery Dates 2 Contract Specifications 2.