MINI NATGAS (NQG)
The value of one future contract on Mini Natural Gas (Henri Hub) is 2.500 x the value of one mmBtu (million Britain thermal unit).
The contracts are traded on CME.
Contract specifications
- Underlying value : 2.500 million Britain thermal units
- Contract size : 2.500 million British thermal units (mmBtu)
- Future value : price of one mmBtul x 2.500 $
- Minimum Price movement : 0,005 (= $ 12,50 per contract)
- Contract listings : monthly
- Physical delivery
- Expiration date : trading of any delivery month shall cease three business days prior to the first day of the delivery month.
Trading example
- One mmBtu is at 5,335 $.
- The value of one future contract on Mini natural gas is 5,335 x 2.500 $ = 13.337,5 $.
- Buy at 5,335 $/mmBtu and sell at 5,337 $/mmBtu
- The minimal price movement of the contract is 0,005 index point.
- The value of one full index point is 12,50 $
- The price of one mmBtu increases from 5,335 $ to 5,337 $ or 0,020 $
- 0,020 = 4 ticks, worth 12,50 $ = 4 x 12,50 $ = 60 $
When the price for one mmBtu goes up from 5,335 to 5,337, the profit is 60 $ on the future contract for mini natural gas
