How to Trade Natural Gas - Meaning, Interpreting, News
Natural gas is a mixture of hydrocarbons, the most important raw material used both in industry and for human needs. It consists mainly of methane CH4for 98%. It is invisible and odorless. It has the designations NG – (natural gas), NGAS, NATGAS, etc. On online charts, it is displayed as MMBtu.
How is natural gas measured? British Thermal Unit (Btu) has been adopted in the world as the natural gas price unit of measure. (1 BTU = 28.48 m3).
Unlike oil, which is sold under various brands – Brent, WTI, etc, the natural gas market sells only NG (or liquefied, but this is a different commodity). When it comes to trading natural gas, it is important to know how is natural gas priced. Gas also has its characteristics depending on the field, and buyers want to purchase more than just the amount of fuel. Therefore, Nymex natural gas price is sold in Btu, but since it is too small, in MMBtu (1 million Btu).
The commodity price of natural gas is subject to significant fluctuations regularly. To be successful in trading natural gas, it is imperative to understand the specifics of price formation for natural gas contracts.
The trader needs to clearly understand and take into account the factors that affect the natural gas rate. For example, the price of natural gas per MMBtu is influenced by the dynamics of quotations for oil, the US dollar, the volume of reserves of this energy carrier, and weather conditions in certain regions. Of course, this list is not exhaustive. With a careful study of the specifics of the behavior of the natural gas market, trading natural gas often provides very good profit.
Natural gas price live chart
You need to observe the natural gas bar chart before thinking about predicting natgas futures. Historical natural gas analysis is very important when examining the performance of the cost of natural gas.
This gas price graph that displays the current price of natural gas or natural gas price today is very important especially for traders who want to trade online with major platforms. Inside the natural gas price live chart, you just have to set the parameters according to the type of trading you want to do.
With natural gas analysis, you can view:
real-time gas quotation;
Some tools integrated into the gas price graph are useful to easily identify the most important points, such as in the case of levels support or resistance or even of moving averages and pivot points.
Natural gas futures news
Various natural gas price news may affect the forex natural gas price. Traders can cope with changes in these gas price trends by staying up to date on the latest natural gas futures news.
How much is natural gas? International gas prices range from $5 to $2.5 per Btu.
This nat gas pricing maximum has not been exceeded for several years and this is the average range over which the maximum and minimum of natural gas quote move.
Thanks to the volatility of the price of natural gas and the financial levers provided by the trading platforms it is possible to make gains.
Where to buy natural gas? Many online trading brokers give the possibility to invest in this sector with leverage, in such a way that they can also multiply the potential earnings.