Natural Gas (NG) Futures Contract Specifications

Energy

Natural Gas Futures (NG) are among the most actively traded energy contracts. Natural gas is a key energy source for heating, electricity generation, and industrial use, making it sensitive to weather and economic conditions.

Contract Specifications

Detailed specifications for trading this futures contract

Contract Size

10,000 million British thermal units (MMBtu)

Tick Size

0.001 per MMBtu ($0.001)

Tick Value

$10.00 per tick

Point Value

$10.00 per point ($0.01 per MMBtu)

Trading Hours

Sunday to Friday, 5:00 PM to 4:00 PM CT (with a 1-hour daily trading halt from 4:00 PM to 5:00 PM CT)

Platform Symbol

Margins

Check with your broker for the latest margin rates and details

Why Trade Natural Gas (NG) Futures?

Key benefits and characteristics of this futures contract

High volatility and liquidity

Weather-sensitive pricing

Seasonal trading patterns

Extended trading hours

Portfolio diversification

Global energy demand indicator

Position Sizing for Natural Gas (NG) Futures

Example calculation for proper position sizing based on risk tolerance

For Natural Gas (NG):

Tick Size: 0.001 per MMBtu ($0.001)

Tick Value: $10.00 per tick

Point Value: $10.00 per point ($0.01 per MMBtu)

If you want to risk $500 with a 50-point stop loss:

Risk per Contract = Stop Loss in Points × Point Value = 50 × 10.00 ($0.01 per MMBtu) = $ 500

Maximum Contracts = Risk Amount ÷ Risk per Contract = $ 500 ÷ $ 500 = 1 contract