Understanding the contract specifications for Natural Gas (NG) futures (NG) is essential for effective trading and risk management. This comprehensive guide covers all the critical details you need including tick values, contract sizes, trading hours, and position sizing strategies to help you trade Natural Gas (NG) futures successfully.
Natural Gas Futures (NG) provide traders with exposure to natural gas prices. These contracts are widely used for speculation on natural gas price movements, hedging energy costs for businesses, or diversifying energy investment portfolios.
The Natural Gas (NG) futures contract (NG) is traded on major exchanges and provides traders with opportunities to profit from price movements in the energy market. Understanding the contract specifications is crucial for proper position sizing and risk management when trading these instruments.
Contract Size: 10,000 MMBtu (million British thermal units)
Example: This contract size allows traders to gain exposure to energy with controlled leverage and risk. Understanding the contract size is fundamental to calculating your position size and managing your trading capital effectively.
These specifications make Natural Gas (NG) futures suitable for traders seeking exposure to energy markets.
The tick value represents the minimum price fluctuation, which directly impacts your profit and loss calculations. Knowing these values is essential for setting stop losses and calculating risk per contract.
Natural Gas (NG) futures trade with extended hours, providing flexibility for traders in different time zones and allowing you to react to global market events.
Platform Symbol: NG
To trade Natural Gas (NG) futures, you'll need to meet specific margin requirements. Margin requirements can vary based on your broker and account type.
Initial margin is the amount required to open a position, while maintenance margin is the minimum account balance needed to keep the position open. Check with your broker for current margin rates.
Effective risk management is crucial when trading Natural Gas (NG) futures. Here are key considerations:
Proper position sizing is crucial when trading Natural Gas (NG) futures. Use our position size calculator to determine the optimal number of contracts based on your risk tolerance and account size.
For Natural Gas (NG) futures (NG):
If you want to risk $500 with a 10-point stop loss:
Risk per Contract = Stop Loss in Points × Point Value = 10 × 1,000.00 per point = $10
Maximum Contracts = Risk Amount ÷ Risk per Contract = $500 ÷ $10 = 50 contracts
Explore other futures contracts in the Energy category and beyond:
Use our free calculator to determine optimal position sizes for this contract.
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