What are natural gas futures?
The Henry Hub Natural Gas futures contract (NG) on the New York Mercantile Exchange (NYMEX) is widely used as a national benchmark price, at 10,000 million British thermal units (mmBtu). The price is based on delivery at the Henry Hub in Louisiana, the nexus of 16 interstate natural gas pipeline systems that draw supplies from the region's prolific gas deposits. The pipelines serve markets throughout the U.S. East Coast, the Gulf Coast, the Midwest, and up to the Canadian border. A broad cross-section of companies - from those involved in exploration and production of natural gas to substantial consumers of energy - can use natural gas futures and options contracts to hedge their price risk.
Natural gas futures and options provide individual investors with an easy and convenient way to participate in an essential energy market and trade futures contracts nearly 24 hours per day, 6 days per week. Natural gas futures can see volatile price swings, which can attract speculators hoping to profit on large price moves, but also opens the exposure to large losses as well.
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Henry Hub Natural Gas futures contracts are offered through NYMEX on the Globex® trading platform and are available to trade electronically through Schwab nearly 24 hours per day, 6 days per week. In addition to natural gas futures, NYMEX-listed crude oil (CL), heating oil (HO), and unleaded gasoline (RB) futures contracts are available to trade at Schwab. An account approved to trade futures is required in order to trade natural gas futures.
Natural gas futures contract specifications
Considering trading natural gas futures? Here are the natural gas futures contract specifications.
|Exchange, Product Name, Product Code||New York Mercantile Exchange (NYMEX), Henry Hub Natural Gas Futures, NG|
|Contract Size||10,000 mmBtu|
|Minimum Tick Size and Value||0.001, worth $10.00 per contract.|
|Trading Times||Natural gas futures are traded electronically on the Globex® trading platform from 6:00 p.m. U.S. ET until 5:00 p.m. U.S. ET, Sunday through Friday.|
|Principal Trading Months||Primary natural gas futures contracts trade every calendar month, from January through December.|
At Schwab, you also get access to advanced trading platforms and education, where you can take advantage of market research, real-time natural gas futures quotes, and other specialized tools.
Why trade natural gas futures?
- Why trade natural gas futures?
- Benefits and risks of trading natural gas futures
Futures trading at Schwab
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