Trading Natural Gas
Natural gas heaters and natural gas power plants
Roughly half of natural gas demand is thermal — heating homes and commercial buildings — and much of the remainder is power generation. That split makes the contract exceptionally weather-sensitive: an unexpected cold snap or an early spring can move price double digits in a week, which is why NGAS carries our widest average daily range.
Price of natural gas
The weekly EIA storage report is the single most important scheduled release, but longer-term direction is set by production growth, LNG export capacity and the pace of coal-to-gas switching in power generation.
Trading a high-volatility contract
Halve your normal size
NGAS ranges are frequently three times those of crude; size the position from range, not from habit.
Respect the Thursday print
The EIA storage number at 15:30 GMT routinely produces multi-percent gaps in seconds.
Plan the roll
Monthly contract rolls change the reference future; check the published calendar before holding through.
Trade Henry Hub natural gas
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74–89% of retail investor accounts lose money when trading CFDs with this provider. Consider whether you understand how CFDs work and whether you can afford the high risk of losing your money.