Natural Gas Futures

Market Background and Fundamentals 

Natural Gas accounts for for approximately 25% of energy consumption in the United States, and is an important source of energy globally. Crude oil accounts for 40% of domestic energy consumption. 

Natural gas is one of the cleanest burning fossil fuels, and consequently has enjoyed an increased popularity. Natural gas uses include power generation, hydrogen production and residential domestic use.

Trading Natural Gas Futures and Options

The New York Mercantile Exchange (NYMEX) is the leading marketplace for energy products such as natural gas. The Natural Gas futures contract is the second most popular energy contract traded on NYMEX after crude oil. Natural Gas is a highly volatile futures contract.

Henry Hub NYMEX Natural Gas Contract Specifications  

Trading Symbol: NG
Trading Unit: 10,000 million British thermal units (mmBtu).
Price Quotation: U.S. dollars and cents per mmBtu.
Trading Hours (ET): Open outcry 9:00 AM until 2:30 PM.
Electronic trading is conducted from 6:00 PM until 5:15 PM via the CME Globex® trading platform, Sunday through Friday. There is a 45-minute break each day between 5:15PM (current trade date) and 6:00 PM (next trade date).
Trading Months: The current year and the next five years. A new calendar year will be added following the termination of trading in the December contract of the current year.
Minimum Price Fluctuation (tick value): $0.001 (0.1¢) per mmBtu ($10.00 per contract).

See also: Phil Flynn's Energy Report