Natural gas futures
Natural gas accounts for almost a quarter of United States energy consumption, and the New York Mercantile Exchange's natural gas futures contract is widely used as a national benchmark price. The NYMEX futures contract trades in units of 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.
Natural gas futures and options provide individual investors with an easy and convenient way to participate in an essential energy market. Due to the volatility of natural gas futures, this market offers the potential for quick and substantial profits and is therefore attractive to speculators. At the same time, however, this is a treacherous market in which speculators can suffer losses. In addition, 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.
This futures contract is available for trading on the CME Group’s Globex electronic trading platform nearly 24 hours per day, and clears through the New York Mercantile Exchange clearinghouse.
In addition to natural gas futures, NYMEX also lists futures on crude oil, heating oil, and unleaded gasoline.
Natural gas futures, New York Mercantile Exchange, symbol NG. Minimum Tick Size: $0.001 per mmBtu, worth $10.00 per contract.
Electronic trading is conducted from 6:00 p.m. U.S. ET until 5:00 p.m. U.S. ET via the CME Globex® trading platform, Sunday through Friday.
Primary natural gas futures contracts trade every calendar month, from January through December.