Natural Gas Contract

17 March 2022

Blog post

The Henry Hub Natural Gas Futures (NG) on the New York Mercantile Exchange (NYMEX) is widely used as the national reference price with 10,000 million British thermal units (mmBtu). The price is based on delivery to the Henry Hub in Louisiana, the hub of 16 interstate gas pipeline networks that purchase deliveries from the region`s productive gas reserves. The pipelines serve markets on the East Coast of the United States, the Gulf Coast, the Midwest and all the way to the Canadian border. A wide range of companies – from natural gas exploration and production to large energy consumers – can use natural gas futures and option contracts to hedge their price risk. On the profile page you will find general information about an icon, whether it is the company or the contract. The bar chart displays different data on the Profile page, depending on the resource type of the symbol. Natural gas futures and options offer individual investors an easy and convenient way to participate in a major energy market and trade futures almost 24/6. Natural gas futures can see volatile price fluctuations that can attract speculators who hope to profit from large price movements, but also open up the risk of large losses. Henry Hub natural gas futures are offered via NYMEX on the Globex trading platform® and can be traded electronically via Schwab almost 24 hours a day, 6 days a week. In addition to natural gas futures, crude oil (CL), heating oil (HO) and unleaded gasoline (RB) futures listed on the nyMEX are available for trading with Schwab.

Trading natural gas futures requires an approved account for trading futures. At Schwab, you also have access to advanced trading platforms and training where you can take advantage of market research, real-time natural gas futures courses and other specialized tools. A profile for a goods contract contains the specifications of the contract. The specifications include: The Henry Hub Natural Gas Futures (NG) is the third largest physical commodity futures contract in the world by volume and is often used as the national benchmark price for natural gas, which continues to grow as a global and U.S. energy source. Natural gas futures can be used for hedging or speculation and can be traded almost 24/6 Trading natural gas futures allows hedges to manage risks related to the highly volatile price of natural gas, which is determined by weather-related demand. Are you planning to trade natural gas futures? Here are the specifications for natural gas futures. It is important to understand the benefits and risks of natural gas futures before placing a futures transaction.

Compared to traditional investments, you can trade natural gas futures outside of traditional market hours associated with stocks and take advantage of trading opportunities, regardless of the direction of the market. Natural gas futures also offer the opportunity to trade with greater leverage and allow for a more efficient use of commercial capital. However, trading leveraged products such as natural gas futures also carries the risk that losses will exceed the amount initially invested and not be suitable for all investors. Natural gas is a colorless, shapeless and odorless fossil fuel in its pure form. It is a mixture of hydrocarbon gases that is mainly formed from methane, but it can also contain ethane, propane, butane and pentane. Natural gas is flammable, burns cleanly and emits a lot of energy. Around 500 BC. J.-C., the Chinese discovered that energy could be exploited in natural gas. They passed it through pipes of raw bamboo shoots and then burned it to bring the seawater to a boil to produce fresh water containing drinking water. In 1785, Britain was the first country to commercially use coal-derived natural gas for street lights and interior lighting. In 1821, William Hart dug the first well specifically designed to extract natural gas, and he is widely regarded in America as the “father of natural gas.” It is estimated that there is still a large amount of natural gas in the ground in the United States Natural gas as an energy source is significantly cheaper than electricity per Btu. Natural gas futures and options are traded on CME Group.

CME`s natural gas futures contract provides for the supply of natural gas, representing 10,000 million British thermal units (mmBtu) to the Henry Hub in Louisiana, the node of 16 national and interstate pipelines. .