Natural Gas
With various price determinants, high trading volumes and multiple investment vehicles, trading Natural Gas is a staple for many serious commodities investors. This overview covers all you need to know about trading Natural Gas in North America, Europe or globally. We cover markets like futures contracts, leveraged exchange-traded funds (ETFs) and trading companies with significant Natural Gas exposure. Read on for a complete Natural Gas trading 101. We have also listed the best brokers and platforms for Natural Gas trading in 2023.
Best Natural Gas Trading Brokers
These are the 9 best brokers for trading Natural Gas:
#1 - Forex.com
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
"Forex.com is an excellent broker for forex traders with over 80 currency pairs, tight spreads, low commissions and powerful platforms. The brand is also heavily regulated while its parent company is listed on the NASDAQ, giving it a high trust score."
- DayTrading Review Team
- Instruments: Forex, Spot Metals
- Regulator: NFA, CFTC
- Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
- Min. Deposit: $100
- Min. Trade: 0.01 Lots
- Leverage: 1:50
Commodities
Forex.com offers trading of 11 commodities:
- Cocoa
- Coffee
- Cotton
- Gold
- Livestock
- Natural Gas
- Oil
- Silver
- Soybeans
- Sugar
- Wheat
Forex Trading
Forex.com is a leading FX broker. The brand offers a wide range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.0 with a $7 commission per $100k.
Stocks Trading
Forex.com offers access to thousands of US, EU and UK stocks, with spreads of just 1 point. Speculate on household names as well as new IPOs. US stocks are available from just 1.8 cents per share.
Pros
- Low minimum deposit of $100
- Excellent trading tools including Trading Central, SMART Signals and MetaTrader 4
- Fast execution speed of less than 1 second
Cons
- $15 monthly inactivity fee
- No copy trading platform
- Investment offering varies between countries
#2 - Kwakol Markets
Kwakol Markets is a Nigerian headquartered broker with strong regulatory oversight in Australia and Canada. A great selection of asset classes are available, including synthetic products that simulate realistic market activity. Clients can trade on the MT4, MT5 and cTrader platforms, as well as a copy trading solution whereby a fee is only paid on profitable trades.
"Kwakol Markets is a good option for newer traders with a dedicated learning academy, copy trading and a choice of reliable platforms. New clients can also sign up and start trading in four straightforward steps."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto
- Regulator: ASIC, FINTRAC
- Platforms: MT4, MT5, AutoChartist
- Min. Deposit: $1
- Min. Trade: 0.01 Lots
- Leverage: 1:1000
Commodities
Kwakol Markets offers trading of 7 commodities:
- Copper
- Gold
- Natural Gas
- Oil
- Palladium
- Platinum
- Silver
CFD Trading
CFDs are available on a breath of underlying assets, including stocks, indices, commodities, forex and cryptos. High leverage up to 1:500 is available alongside a 0.01 minimum lot size and award-winning software. For the tightest spreads from 0 pips, opt for the Premium account.
Forex Trading
Kwakol Markets offers a wider range of forex pairs than most competitors, with 90+ assets available. Users get fast execution speeds through the ECN model and competitive spreads. On the negative side, not all currency pairs are available on MT4.
Stocks Trading
Trade stocks with zero commissions and ultra-fast trade executions. Clients get exposure to US, EU, Asian and Russian stock markets on both the MT4 and MT5 platforms. Stocks are available as CFDs, so users will not own the underlying shares.
Crypto Trading
Trade cryptos against fiat currencies, other cryptocurrencies and metals like gold. This separates the broker from many alternatives that only offer cryptos paired with the USD. High leverage up to 1:20 on cryptos is available, plus support for Expert Advisors and copy trading.
Pros
- 2FA login security
- Wide range of free learning resources such as an eBook
- MetaTrader 4 and MetaTrader 5 integration
Cons
- Regional restrictions in certain countries
- High deposits for premium features
- The only base currency is USD
#3 - IG Group
IG is an award-winning broker that has an excellent reputation globally. The brand-US offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
"IG offers a superb all-round package. Beginners will appreciate the user-friendly web platform and secure trading environment while established investors will rate the 17,000+ markets and top-tier market research."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
- Regulator: FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA
- Platforms: MT4, AutoChartist, TradingCentral
- Min. Deposit: $0
- Min. Trade: 0.01 Lots
- Leverage: 1:30 (Retail), 1:250 (Pro)
Commodities
IG Group offers trading of 18 commodities:
- Aluminium
- Cannabis
- Coffee
- Copper
- Gold
- Iron
- Lithium
- Natural Gas
- Nickel
- Oil
- Orange Juice
- Palladium
- Precious Metals
- Silver
- Soybeans
- Steel
- Sugar
- Wheat
CFD Trading
IG offers an impressive suite of 17,000+ CFD instruments. Negative balance protection ensures accounts cannot drop below zero while custom price alerts and the IG Academy enhance the trading experience.
Forex Trading
IG offers currency trading on its award-winning web platform and mobile app. Comprehensive charts and forex analysis tools are also available through ProRealTime.
Stocks Trading
IG offers 13,000+ shares, with more listed firms than most competitors. Fees are low with no commission on US stocks. Extended hours trading is also available alongside ultra-fast execution speeds of 0.014 seconds.
Crypto Trading
11 popular cryptos are available, plus two crypto crosses. A crypto index is also offered, following the value of the top 10 digital currencies by market cap. All cryptos are available via CFDs.
Pros
- Over 17,000 assets are available spanning stocks, forex, commodities, baskets, futures, options and more
- IG is an LSE-listed company with a transparent financial history and a great track record
- Opening an account takes less than 5 minutes
Cons
- Inactivity charge
- No copy trading platform
#4 - Pocket Option
Founded in 2017, Pocket Option is a binary options broker offering up/down contracts on forex, stocks and cryptocurrencies. With over 100,000 active users and a global reach, the brand has proven popular with budding traders. Pocket Option also supports dozens of payment methods and has a low minimum trade of just $1.
"We recommend Pocket Option for aspiring binary options traders looking for copy trading services and a low minimum investment."
- DayTrading Review Team
- Instruments: Binary Options, Currencies, Commodities, Stocks, Indices
- Regulator: IFMRRC
- Platforms: MT5
- Min. Deposit: $50
- Min. Trade: $1
Commodities
Pocket Option offers trading of 6 commodities:
- Gold
- Natural Gas
- Oil
- Palladium
- Platinum
- Silver
Forex Trading
Binary and OTC options can be purchased on over 40 foreign exchange pairs. Typical payouts are also decent at 81% and users can trade forex binary options in just a couple of clicks.
Stocks Trading
Trade 30 of the most popular American multinational stocks including Microsoft and Google. Payouts on big brands come in at a decent 92% while indices are available up to 67%.
Crypto Trading
Pocket Option supports major cryptocurrencies on a beginner-friendly app. Over 10 leading cryptocurrencies are available with very high leverage up to 1:1000.
Pros
- Multiple strategies supported
- 50+ payment methods
- Copy trading
Cons
- The expiration time is limited on trades
- Only one account type is available
- IFMRRC is not a reputable regulator
#5 - Nadex
Nadex is a renowned exchange and binary options provider, based in the US. The company is fully regulated by the CFTC and offers options, call spreads and Knock Out contracts. Nadex also has just a $1 entry or exit fee and a user-friendly platform and proprietary app.
"Users looking to trade short-term binary options with a US-regulated broker will find a good platform in Nadex."
- DayTrading Review Team
- Instruments: Binary Options, Knock Outs™, Call Spreads
- Regulator: CFTC
- Platforms: Own
- Min. Deposit: $250
- Min. Trade: $1
Commodities
Nadex offers trading of 4 commodities:
- Gold
- Natural Gas
- Oil
- Silver
Forex Trading
Speculate on 11 popular currency pairs via Knock Out contracts, call spreads and binary options. Nadex offers a wider range of timeframes than most binary options brokers, with contracts spanning from intraday to weekly.
Stocks Trading
Speculate on a handful of global indices via binary options contracts, including the S&P 500 and FTSE 100. There are low commissions and traders can see fixed payouts and risk levels before opening a trade.
Crypto Trading
Nadex offers a limited list of cryptos with just Bitcoin and Ethereum. Traders can go long or short though with straightforward binary options contracts that mean you don't need to own the underlying token.
Pros
- A range of timeframes that will suit both short and longer term strategies
- Proprietary mobile app with good range of indicators and charting tools
- Extensive educational resources for those new to binary options trading
Cons
- Products and tools are more advanced than some alternatives
- No welcome bonuses or financial incentives
- No MT4 or MT5 platform integration
#6 - ForexChief
ForexChief is a foreign exchange and CFD broker, established in 2014. The company is based offshore and registered with the VFSC and FMA. Users can choose between a wide selection of accounts and base currencies, making ForexChief accessible to global traders. The brand also stands out for its no deposit bonus and fee rebates for high-volume traders.
"ForexChief will prove popular with investors looking to trade highly leveraged CFDs on the popular MetaTrader platforms. The large welcome bonus and low starting deposit will also appeal to new traders."
- DayTrading Review Team
- Instruments: CFDs, Forex, Metals, Commodities, Stocks, Indices
- Regulator: VFSC
- Platforms: MT4, MT5
- Min. Deposit: $10
- Min. Trade: 0.01 Lots
- Leverage: 1:1000
Commodities
ForexChief offers trading of 4 commodities:
- Gold
- Natural Gas
- Oil
- Silver
CFD Trading
ForexChief offers a competitive range of CFDs, encompassing crypto, indices, energies and metals. A clear pricing schedule is available to clients with no hidden charges. Traders can also access very high leverage up to 1:1000.
Forex Trading
ForexChief supports spot foreign exchange trading on all account types for 40+ major, minor and exotic currency pairs on the leading MT4 and MT5 platforms. Spreads are tight starting from zero and there are no dealers or requotes.
Stocks Trading
ForexChief offers 100 US company stocks CFDs for MT4 DirectFX and Classic+ account holders. Investors can speculate on the price of some of the world's largest companies, including Apple and Coca Cola. Spreads start from 5.
Crypto Trading
ForexChief supports crypto trading with five major digital currencies paired against the US dollar. Traders can bet on rising and falling prices with leveraged CFDs and market-leading trading software.
Pros
- High leverage up to 1:1000 is available
- Copy trading solution with signals
- A welcome deposit bonus is offered to new users
Cons
- Limited market research
- Withdrawal fees on several payment methods
- Weak regulatory oversight
#7 - Axofa
Axofa is a forex and CFD broker registered in St Vincent and the Grenadines. The broker offers three account types with access to forex, commodities and indices. With ECN processing, low minimum deposits and no commissions, Axofa could be an attractive option, although the broker does not hold a reputable license.
"Axofa could be a good option for clients looking for social trading features alongside the MT5 platform, and are willing to trade with an offshore brand."
- DayTrading Review Team
- Instruments: Forex, CFDs, Stocks, Indices, Commodities
- Regulator: SVGFSA
- Platforms: MT5
- Min. Deposit: $1
- Min. Trade: 0.01 Lots
- Leverage: 1:1000
Commodities
Axofa offers trading of 6 commodities:
- Gold
- Natural Gas
- Oil
- Palladium
- Platinum
- Silver
CFD Trading
CFDs are available on popular asset classes with a competitive $1 minimum deposit. The broker offers very high, unrestricted leverage of 1:1000, which will amplify both profits and losses.
Forex Trading
Axofa offers 50+ forex pairs with raw spreads and low commissions. On the downside, the broker is not particularly transparent when it comes to their account conditions and fees.
Stocks Trading
A decent selection of 100+ popular international stocks are available. Traders can also test out their strategies in the free MT5 demo account, though the conditions are more limited vs other brokers.
Pros
- Access to high leverage up to 1:1000
- Proprietary mobile app
- MT5 integration
Cons
- Unregulated broker
- Limited verifiable information about the broker’s owners and background
- Inconsistencies between international subsidiaries and website information
#8 - Coinexx
Coinexx is an unregulated broker that provides leverage up to 1:500 on forex, commodities, indices and cryptocurrencies with deep liquidity, pure ECN spreads and negative balance protection. The broker uses crypto as base currencies and has low minimum deposit requirements of 0.001 BTC.
"Traders seeking highly leveraged CFDs with a broker that uses crypto as a base account currency will find a good match in Coinexx. The ECN model also offer tight spreads from 0 pips. On the downside, traders should note the weak regulatory oversight."
- DayTrading Review Team
- Instruments: Forex, Commodities, Indices, Cryptocurrencies
- Platforms: MT4, MT5
- Min. Deposit: 0.001 BTC
- Min. Trade: 0.01 Lots
- Leverage: 1:500
Commodities
Coinexx offers trading of 4 commodities:
- Gold
- Natural Gas
- Oil
- Silver
CFD Trading
Trade flexible CFDs on forex, commodities, indices and cryptos with tight spreads, fast execution, micro-lot trading and leverage up to 1:500. There are also no restrictions on day trading strategies.
Forex Trading
Trade 70 major, minor and exotic forex pairs with ultra-low ECN spreads and fast execution via the MT4 or MT5 platforms. There are also zero SL/TP limits and automated forex trading is well catered for.
Stocks Trading
Coinexx traders can speculate on broad movements of global markets via five indices covering exchanges in the US, UK, Germany, and China. On the downside, there are no individual stocks which is a significant drawback.
Crypto Trading
Trade CFDs on BTC, ETH, LTC and XRP with 1:5 leverage, market execution and 0.01 micro lot trading. However, we weren't impressed with the narrow choice of cryptos with no emerging, smaller-cap tokens available.
Pros
- MetaTrader 4 and MetaTrader 5 integration
- Free VPS for active traders
- Demo account available to prospective traders
Cons
- No copy trading service for aspiring investors
- Limited educational materials for new traders
- No regulatory oversight reduces safety
#9 - Scope Markets
Scope Markets offers day trading and investing in multiple spot and CFD instruments. The group of brokers is regulated in several locations, including Belize, Kenya and South Africa. Users get competitive trading conditions, a range of payment methods, strong support and can get started in a few straightforward steps.
"Scope Markets will appeal to traders seeking highly leveraged CFDs and spot investment products on the powerful MetaTrader 5 platform. The Scope Markets Group stands out for its range of trading tools and educational materials."
- DayTrading Review Team
- Instruments: Forex, Stocks, Commodities etc.
- Regulator: CMA, FSC, FSCA
- Platforms: MT4, MT5
- Min. Deposit: $50
- Min. Trade: 0.01 lots
- Leverage: 1:2000 (location dependent)
Commodities
Scope Markets offers trading of 6 commodities:
- Gold
- Natural Gas
- Oil
- Palladium
- Platinum
- Silver
CFD Trading
Scope Markets clients can trade CFDs on a good selection of asset classes including forex, precious metals, energies, indices and global shares. The award-winning broker also offers a decent suite of educational materials and a YouTube channel to support aspiring traders.
Forex Trading
Scope Markets offers MT5 trading for a range of major, minor and exotic currency pairs with high leverage and a low starting deposit. Multilingual 24/5 support is also available to support forex traders.
Stocks Trading
Scope Markets offers stock trading on popular markets, alongside cash and futures indices. Clients can speculate on major stocks from US, EU, Australia, and more with competitive fees and reliable trading software.
Crypto Trading
Go long or short on popular cryptos like Bitcoin, Ethereum and Ripple with leveraged CFDs and competitive spreads. Depending on the jurisdiction, different regulations apply. CFDs on cryptocurrencies are not offered in all jurisdictions.
Pros
- Low commissions and fees
- Multi-regulated group
- Regular market news, updates and webinars
Cons
- Limited trading instruments
- Regulatory scrutiny varies between countries
What Is Natural Gas?
Natural Gas (trading symbol – NG) is a fossil fuel energy source extracted from wells drilled into resource-rich areas of the environment. Raw Natural Gas is sent to a refinery where certain compounds are separated and the fuel is distilled into consumer-grade Natural Gas.
This final product is burned to generate electricity and heating for residential properties and industrial environments. The gas also fuels specialist vehicles and provides an energy source for the compressors that move resources through large-scale pipeline networks.
Natural Gas is a prevalent energy source, with over 35% of all US electricity generated by burning this fuel. However, this will likely change in the future, with a global pivot towards cleaner, renewable energy underway.
Natural Gas Trading Fundamentals
There are several key price determinants that impact the value of Natural Gas. Good knowledge of these factors is required to underlie any water-tight trading analysis and strategy for the asset.
Availability
The most basic principles of trading price economics are supply and demand. Therefore, the availability of Natural Gas is perhaps the best indicator for Natural Gas trading prices.
Our experts recommend that investors keep an eye on trading news for the discovery of new drilling fields, global transportation issues and increased duties on major regional fuel imports and exports.
Seasonal Demand
The demand for Natural Gas is affected by season and weather. As investors may expect, colder seasons in major Natural Gas consumer regions will raise the commodity’s demand and increase the price.
However, hot weather can also trigger a significant increase in the demand for Natural Gas. This is because an increase in air conditioning and other cooling solutions will increase the electricity demand.
Availability & Cost Of Alternatives
The availability of Natural Gas alternatives, such as Petroleum, also plays a crucial part in determining prices.
When alternatives are scarce or expensive, Natural Gas will also increase in price. This is due to greater demand from the industrial sectors that need a combustible fuel source for their production.
On the other hand, an increase in supply or a reduction in the cost of Natural Gas alternatives will lower its value.
When trading Natural Gas, it is always a good idea to keep on top of the news for related commodities such as Crude Oil or Petroleum to stay ahead of the markets.
Global Economic Health
When the global economy is facing a downturn, industry and consumers alike will be looking to save money by slashing bills wherever possible. This may lead to reduced demand for Natural Gas as companies and individuals reduce their heating and electricity use where possible.
Fossil Fuel Sentiment
As the switch to cleaner energy progresses, different global regimes move towards climate goals at different rates.
As a result, new emissions targets and international agreements may trigger a decrease in Natural Gas prices, especially in the futures markets. On the other hand, the relaxing of targets by other nations may cause an increase in the asset’s value.
In addition, anti-fossil fuel movements in the trading sphere, such as ESG investing, may cause a decrease in Natural Gas company stock values as individual and institutional investors move away from polluters.
How Does Natural Gas Trading Work?
As with most fuels, Natural Gas is a publicly traded commodity, with investors able to trade the resource via several vehicles. These range from investments in the underlying asset to purely derivative-based trading and include cash markets, futures contracts, ETFs and CFDs. The best Natural Gas brokers and platforms offer a choice of these instruments:
Spot Trading
Spot trading involves the purchase and sale of physical units of Natural Gas. Assets are exchanged at the current market trading price.
Spot trading involves dealing directly with the commodity itself, meaning investors must ensure they can either store their Natural Gas or move it on directly to a buyer. Spot trading may also be used as a hedging or arbitrage strategy when trading futures contracts.
Futures Contracts
Futures contracts are agreements to buy or sell a unit value of a specific asset for a set price at a particular time. These contracts can last from one month to several years and are exchange-traded between suppliers, investors and consumers.
Trading Natural Gas futures exposes investors to longer-term price quotes and is a versatile instrument suitable for both day trading and swing trading. The CTFC, regulator oversees these markets in the USA on exchanges such as the NYMEX and CME. Futures are also regulated in London in the UK and across Europe.
As futures are physical contracts rather than derivatives, Natural Gas traders will need to look to resell futures contracts before the last trading day. This will avoid unwitting investors having to take delivery of the commodity.
CFDs
The simple definition is that CFDs, or contracts for difference, allow traders to speculate on the price of an asset with significant leverage, sometimes up to 1:500. Natural Gas CFDs are usually traded on their futures contract value. However, some CFD brokers may offer spot price speculation.
Using a derivative like a CFD eliminates the need to worry about having to take delivery of Natural Gas units. However, due to their high leverage, this form of trading comes with increased risk compared to other instruments.
This forex-style trading method best suits day trading strategies to avoid overnight fees for maintaining positions longer than one trading day.
Spread Betting
Spread betting is similar to CFD trading but is classed as gambling in some jurisdictions, such as the UK. This can lead to tax advantages for some traders.
As with CFDs, the high leverage involved in spread trading Natural Gas means that investments come with additional risk but the potential for more significant upside.
Binary Options
Binary options are another vehicle when trading Natural Gas.
Binary options boast advantages such as capped losses, payouts of up to 95% and a wide range of contract lengths as low as three seconds with some brokers. Indeed, day trading Natural Gas using binary options can turn even small price movements into lucrative gains.
However, this is not a well-regulated instrument, and the downside of capped losses is capped gains on successful trades.
Options
Options offer investors the best of both worlds in that contracts can either be cash-settled or exercised to claim the underlying asset. As with futures contracts, this instrument is exchange-traded and regulated by the CFTC in the US.
Traders can either go long or short when options trading Natural Gas, with each contract corresponding to 100 units to provide substantial innate leverage.
Options are best suited to swing trading, though some investors trade last trading day (0DTE) options as a more risky strategy.
ETFs
For those who wish to speculate on the spot price of Natural Gas, trading an ETF that tracks this price is a potential option.
Investors can increase or decrease their exposure to price fluctuations using leveraged ETFs, with levels typically between 0.5x and 3x leverage. Traders can also go short on Natural Gas prices by trading using an inverse ETF.
Investors can also gain exposure to Natural Gas companies with an ETF on Natural Gas trading companies. This differs from a mutual fund as ETFs can be purchased and sold intraday, opening up the possibility for swing and day trading.
Traders based in Europe, the UK or the rest of the world should note that ETFs are more accessible to non-US investors than options or futures contracts.
Stocks & Mutual Funds
Our final suggested method to gain exposure to Natural Gas is trading companies related to the industry. Investors can achieve this through single stocks or mutual funds concentrated on the energy sector.
As well as potentially diversifying an investment to cover several energies, trading oil and gas companies opens the possibility of receiving dividends. These dividends are often significant when trading the largest Natural Gas trading companies, for example, Shell and BP.
Education
Despite the relatively straightforward price determinants of Natural Gas, its value can often be unpredictable, even for seasoned traders. For this reason, our experts recommend arming yourself with a solid understanding of Natural Gas trading, whether by reading books, attending courses or doing your own research online.
This will involve extra time and expense or following signals for recommended forecasts. However, the ability to conduct reasoned analysis and set independent price targets is how to make money trading Natural Gas in the long run.
Pros Of Trading Natural Gas
Benefits of signing up with the top Natural Gas trading brokers include:
- Products – There is a wide range of investment vehicles which can be used to trade Natural Gas
- Combo Potential – Investors can hedge one investment with another by combining futures, options and spot positions
- A Relevant Commodity – Natural Gas remains a highly global relevant commodity despite environmental concerns
- Straightforward Price Determinants – Natural Gas prices are mainly determined by simple supply and demand
- High Volatility – Natural Gas is one of the most volatile commodities, offering strong profit potential
Cons Of Trading Natural Gas
Disadvantages to trading Natural Gas include:
- Environmentally Unfriendly – ESG-conscious investors may want to avoid this market
- Not The Most Liquid Commodity – Despite the popularity of Natural Gas, several oil and metals markets have higher trading volumes
- Diminishing Long-Term Prospects – As the world transitions away from fossil fuels for its energy needs, Natural Gas will experience less and less demand
- High Volatility – While high volatility opens up lucrative trading opportunities, sharp short-term trends can be a disadvantage for longer-term strategies
Natural Gas Trading Strategies
Many Natural Gas trading strategies are available to investors, from simple to complex, from manual to trading-bot-powered methods. Here are a few of our experts’ top strategy tips to get you started:
Trading The News
This short-term investment strategy consists of reacting to news and announcements faster than the market. Many traders use the motto ‘buy the rumour, sell the news’ as a guide. Trading forums can be a good place to get early insights into major news events and tips.
Swing or intraday trading Natural Gas using binary options, CFDs, leveraged ETFs, or spread bets is well suited to news-based speculation.
Long-Term Investing
Longer-term price predictions based on factors such as seasonal change or global supply are also well-suited to Natural Gas. The best instruments for this strategy are stocks, ETFs and futures contracts.
Covered Calls
Covered calls are an options strategy designed to generate small but consistent profits. For this, investors need to hold a long spot position on Natural Gas and then sell short positions to investors. The options premium is the profit of this trade.
However, storing spot Natural Gas may be an issue for most traders. As a result, this strategy may be limited in its practicality.
Hedging & Arbitrage
In trading, arbitrage involves taking advantage of price discrepancies between different exchanges or instruments to profit. Hedging works similarly but is used as a strategy to reduce risks when trading by taking on an opposing position in a similar asset or instrument.
Options contracts, futures contracts and spot Natural Gas are the best instruments for this strategy.
Trading Times
Natural Gas markets operate at different times worldwide depending on the specific asset. Depending on the local exchange where the product is sold, the Natural Gas trading hours vary. For example, when trading CME Natural Gas futures, the trading times in Germany, India, Canada and the US will differ. With that said, a significant amount of trading volume is seen between 6 pm US ET to 5 pm US ET, Sunday to Friday.
Note, the best Natural Gas brokers provide opening times and market closures on their websites. They will also provide economic calendars and holidays sessions. In addition, they make provide after-hours trading and support for algorithmic trading strategies.
Final Word On Trading Natural Gas
Despite the slow global shift away from fossil fuels, commodity trading Natural Gas remains a volatile, high-volume and lucrative market. With simple price determinants, high international demand and various instruments available to suit every investment style, serious commodity traders should not overlook Natural Gas as a potentially profitable market.
Use our list of the top brokers for trading natural gas to get started.
FAQ
What Is Natural Gas Trading At Today?
There are several prices related to Natural Gas, such as tracker ETF prices, spot values, futures contracts and company equity values. Interested parties can view most of these on a service such as TradingView or Yahoo Finance.
What Is The Best Natural Gas Trading Strategy?
The wide range of instruments available for Natural Gas trading means no shortage of strategies will work. However, our experts recommend starting with methods like trading news, or investing in long-term trends as a starting point.
What Is The Lot Size Of Natural Gas?
Futures and options contracts for Natural Gas will usually trade in lot sizes of 100 units. However, relative trade size can be increased using CFDs or spread betting through leverage.
Is Trading Natural Gas Profitable?
Many investors will want to know how to make money trading Natural Gas. The volatile market conditions present plenty of opportunities for profitable trading. However, ensure you do your due diligence before diving straight into the markets. Use our overview to day trading Natural Gas to get started.
What Time Does Natural Gas Start Trading?
There are several international instruments to trade Natural Gas, all with unique market hours based on their local exchanges. However, as most Natural Gas instruments, such as the CME Natural Gas futures product, are US-based, US market hours will likely be the ones to follow.