What are Henry Hub Natural Gas Futures (NG)?

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Henry Hub Natural Gas futures from the CME Group empower traders with an efficient way to speculate today’s global natural gas market. The benchmark for natural gas trading, NG futures provide a cost-effective way to participate in this highly volatile market.

Natural Gas futures trade on the New York Mercantile Exchange (NYMEX) which was acquired by the CME Group in 2008, adding an extensive selection of energy products to their product offering. This benchmark energy contract is based on the future value of natural gas as determined by global supply & demand along with speculation of the underlying physical commodity.

Why Trade NG Futures?

Natural Gas futures are an incredibly active market for futures traders to participate in. A notoriously volatile futures instrument, NG futures offer a market ripe with opportunities for day traders, swing traders and position traders alike.

The price of NG can fluctuate based on a number of factors including weather events, seasonal cycles, economic data and inventory reports. A favorite among day traders, natural gas traders eagerly await each week’s EIA weekly reports which tracks natural gas supply levels in storage. Additionally, crude oil inventory reports also affect natural gas prices since it is considered an oil alternative.

By volume, Henry Hub Natural Gas futures make up the 3rd largest physical commodity futures contract in the world providing traders with a deep, liquid market to help manage and mitigate risk.

Natural gas remains a major source of energy for the world despite growing interest in renewable forms of energy. In fact, the use of natural gas is rising in South America, Asia and Europe. Due to this global interest, Natural Gas futures attract participants from all over the world and trade nearly 24/7 Monday through Friday.

Henry Hub Natural Gas Futures Contract Specs:

  • Exchange: Chicago Mercantile Exchange (CME)
  • Class: Futures
  • Trading Symbol: NG
  • Contract Size: 10,000 million British thermal units (MMBtu)
  • Pricing Unit: U.S. Dollars
  • Tick Size: 0.001
  • Tick Value: $10
  • Point Value: 1 = $10,000
  • Average Daily Volume: 5,217 (Year to Date August 2019)
  • Intraday Margin: $1000
  • Contract Months: All 12 calendar months
  • Trading Hours: Sunday to Friday 6:00 pm – 5:00 pm ET
  • Position Limit: 10 contracts

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