NATGAS PHY (NNG)
The value of one future contract on Natural Gas (Henri Hub) is 10.000 x the value of one mmBtu (million Britain thermal unit).
The contracts are traded on CME.
Contract specifications
- Underlying value : 10.000 million Britain thermal units
- Contract size : 10,000 million British thermal units (mmBtu)
- Future value : price of one mmBtul x 10.000 $
- Minimum Price movement : 0,001 (= $ 10 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 :
- Price of 1 mmBtu at 5,346 $.
- The value of one future contract on natural gas is 5,346 x 10.000 $ = 53.460 $.
- Buy at 5,346 and sell at 5,376.
- The price of one mmBtu increases from 5,346 $ to 5,376 $ or 0,030 $
- 0,030 x 10.000 $ = 300 $
- When the price for one mmBtu goes up from 5,346 to 5,376 equals a profit of 300 $ on the future contract natural gas.
