- One way is through a futures contract. A futures contract is an agreement to buy or sell something—like natural gas, gold, or wheat—at a future date. Day traders close out all contracts (trades) each day and make a profit or loss on each trade based on the difference between the price they bought the contract and the price they sold it.
People also ask
What are natural gas futures?
How many MMBtu are in a natural gas contract?
What do you need to know about natural gas contracts?
What are the fundamentals of natural gas trading?
Natural gas futures prices are based on delivery at the Henry Hub in Louisiana. Traded electronically on CME Globex and off-exchange for clearing only as an EFS, EFP or block trade through CME ClearPort. Options types include American, calendar spread, European and daily.
Minimum tick value: The tick value of a natural gas contract is $10. Since natural gas prices fluctuate in increments of $0.001, 10,000 MMBTUs multiplied by $0.001 equals $10. Trading months: Natural gas futures have contracts for every month of the year. Trading hours: Natural gas trading is available 24 hours a day, Sunday through Friday.
Deep liquidity – Nat Gas bid/ask is the tightest available in the market. Value/cost savings – significant savings for electronic execution of financial futures. Strong market fundamentals – NYMEX settlement prices serve as industry benchmarks. Market access – a variety of contract sizes and settlement options, including Financial ...
Trading futures & options. To start trading Natural Gas futures & options, you will first need to open a futures trading account…. Sign Up Now. Once you’ve opened an account, you will have access to our trading platform (you may also phone your orders in to our 24 hours trade desk).
Natural gas futures contracts provide ample opportunities for both swing traders and day traders. Learn how to create your own trading strategy.