Natural Gas Futures
What are natural gas futures?
Natural gas futures are the most widely used benchmark for the price of this commodity. Natural gas has multiple uses, and it's the primary energy source used for residential heating and cooking. Natural gas futures provide individual investors with a way to participate in this essential energy market. In recent years, CME Group has introduced the mini natural gas futures contract.
How to trade natural gas futures
Natural gas futures and E-mini natural gas futures can be traded nearly 24 hours a day, five days a week on the thinkorswim® trading platforms.
Natural gas futures contract specifications
Considering trading natural gas futures? Here are the natural gas futures contract specifications.
| Exchange, Product Name, Symbol | New York Mercantile Exchange (NYMEX), Henry Hub Natural Gas Futures, /NG |
| Multiplier | 10,000 mmBtu |
| Minimum Tick Size and Value | 0.001 = $10.00 |
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Settlement |
Physical1 |
| Trading Hours | Sunday 6 pm - Friday - 5 pm ET (5 pm - 4 pm CT) with a daily maintenance period from 5 pm - 6 pm ET (4 pm - 5 pm CT) |
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 consider trading natural gas futures?
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Investors can use natural gas futures to hedge against investments in their portfolio that may be sensitive to natural gas price changes. Investors can use natural gas futures to speculate on the future price of natural gas, and natural gas futures can be an alternative to oil and gas stocks. Natural gas prices can change due to a number of factors, most notably extremely hot or cold weather and resulting energy use that could potentially impact supply disruptions. Also, discoveries of natural gas fields which can create structural changes in the market. Options on natural gas futures are also available.
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It is important to understand the benefits and risks involved natural gas futures before placing a futures trade. With natural gas futures you can trade nearly 24 hours a day, five days a week and take advantage of potential trading opportunities regardless of market direction. natural gas futures also provide the ability to trade with greater leverage and can allow a more efficient use of trading capital. However, trading leveraged products like natural gas futures is not suitable for all investors. It involves risks that greater losses can occur with smaller market movements, and more than your initial investment can be lost.
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Futures trading at Schwab
Take advantage of specialized education, platform, and support.
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Ready to start trading natural gas futures with Schwab?
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Just getting started with futures? Learn more about futures and the unique advantages and risks of futures trading.