Energy
NATGAS — Natural Gas
0.5 – 3 cents · 3 – 10 %
Natural gas is the most volatile mainstream commodity, driven by weather forecasts and storage data. Double-digit percentage days are normal.
Risk first
Numbers below are typical ranges, not guarantees — spreads, swaps and volatility differ per broker and market regime. Size every position from your stop distance and account risk, never from a fixed lot habit.
Contract specifications
| Spec | Value |
|---|---|
| Contract size | 1.00 lot = 10,000 MMBtu |
| Pip / tick value | 0.001 → 10 USD / 1.00 lot |
| Typical spread | 0.5 – 3 cents |
| Typical daily range | 3 – 10 % |
| Best trading hours | New York session; storage report Thursdays 14:30 UTC |
What moves this market
- ▸Weather forecasts (heating and cooling demand)
- ▸Weekly EIA storage data
- ▸LNG exports and production levels
Correlations to watch
- ▸Weak correlation to crude oil despite both being energy
- ▸Seasonal patterns dominate
How traders approach it
- ▸Very small size, wide stops
- ▸Trade after the storage report, not into it
- ▸Use daily levels; intraday noise is extreme
Typical mistakes
- ▸Applying FX position sizing
- ▸Holding leveraged overnight through weather revisions
Related instruments
Analyse it in FX CURIO
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