Spread Betting on Natural Gas

Where to Spread Bet on Natural Gas

Commodities
Gold (spread size)	4	5	5	4	4	4	4
UK Crude Oil (spread size)	5	5	4	4	6	4	5
Commodities (min stake)	£1	£1	£1	£1	£0.50	£0.50	£1
Commodities (more available)

Commodities News and Analysis

• Commodities Spread Betting News
• Gold Spread Betting Analysis
• Crude Oil Spread Betting Analysis
• Silver Spread Betting Analysis
• Coffee Spread Betting Analysis
• Natural Gas Spread Betting Analysis

Natural Gas Spread Betting Prices and Charts

• Capital Spreads
• City Index
• ETX Capital
• Financial Spreads
• GFT
• IG Index
• InterTrader

How to Spread Bet on Natural Gas

Spread Betting Market:	Natural Gas (March) Futures
Spread Betting Quote:	$2.444 - $2.474
How the Market Works:	You can speculate on the Natural Gas Futures market settling:   Higher than $2.474, or   Lower than $2.444 When the market closes on the expiry date for the 'March' futures spread betting market, 24 February 2012. It is important to bear in mind that, as this is a futures market, your position will close when the March Natural Gas futures markets are settled, 24 February 2012. However, you can also decide to close your spread bet prior to the closing date.
Units (Points) Traded:	Futures trades on the Natural Gas market are priced in £x per $0.001. Where $0.001 is $0.001 of the energy’s price movement. E.g. if Natural Gas changes by $0.050 then you would lose or win 50 times your stake.
Stake Size per Unit:	You work out what to risk per $0.001, e.g. £2 per $0.001, £4 per $0.001, £15 per $0.001 etc.
Short Staking Exercise:	If, as an example, your stake is £5 per $0.001 and Natural Gas moves by $0.028, you would win or lose £5 per $0.001 x $0.028 = £140.

Fully Worked Spread Trading Example | Taking a Bullish View of Natural Gas

You Work Out Whether to Go Long or Short:	Where do you think that Natural Gas will close on 24 February 2012:   Higher than $2.474? or   Lower than $2.444?
You Might Choose to Go Long:	Higher than $2.474
You Choose How Much to Risk, Let's Say You Opt For:	£2 per $0.001
Now What?	You make a gain of £2 for every $0.001 Natural Gas settles higher than $2.474 You make a loss of £2 for each $0.001 Natural Gas closes lower than $2.474
If You Are Spread Betting on a Market to Increase Your P/L =	(Settlement Level - Opening Level) x stake per $0.001
Trading Situation 1	Natural Gas increases and the commodities spread betting market is adjusted and moved to $2.542 - $2.572.
Take Your Profit?	At this point, you may choose to keep your bet open until expiry or close it, i.e. close your spread bet to lock in your profit. For this example, you decide to settle your bet at the current price by selling the market at $2.542.
Your P/L =	(Settlement Level - Opening Level) x stake per $0.001
	($2.542 - $2.474) x £2 per $0.001
	$0.068 x £2 per $0.001
Your P/L =	£136 profit
Trading Situation 2	Natural Gas falls and the spread trading market is revised to $2.400 - $2.430.
Limit the Loss?	You could choose to let your futures trade run to expiry or close it, i.e. close your position and limit your loss. For this example, you decide to settle your position now and sell at $2.400.
Your P/L =	(Settlement Level - Opening Level) x stake per $0.001
	($2.400 - $2.474) x £2 per $0.001
	-$0.074 x £2 per $0.001
Your P/L =	-£148 loss

Worked Example | Selling Natural Gas

You Consider Whether to Buy or Sell:	Does your research lead you to believe that Natural Gas will finish at on 24 February 2012:   Higher than $2.474? or   Lower than $2.444?
Let's Assume You Choose to Go Short:	Lower than $2.444
You Decide Your Stake Size, Let's Say You Choose:	£1 per $0.001
So What Now?	You make a loss of £1 for each $0.001 Natural Gas settles above $2.444 You make a gain of £1 for each $0.001 Natural Gas settles lower than $2.444
When Going Short of a Market Your P/L =	(Opening Level - Settlement Level) x stake per $0.001
Trading Situation 3	Natural Gas decreases and the quote for the market is revised and moved to $2.330 - $2.360.
Lock in a Profit?	You may choose to let your futures trade run to expiry or close it, i.e. close your spread bet for a profit. For this example, you decide to close your trade at the current rate and buy at $2.360.
Your P/L =	(Opening Level - Settlement Level) x stake per $0.001
	($2.444 - $2.360) x £1 per $0.001
	$0.084 x £1 per $0.001
Your P/L =	£84 profit
Trading Situation 4	Natural Gas climbs and the quote for the futures market is revised and is set at $2.506 - $2.536.
Limit Your Loss?	You can choose to keep your futures spread bet open until expiry or close it to limit your losses. In this case you opt to settle your bet at the current market price by buying at $2.536.
Your P/L =	(Opening Level - Settlement Level) x stake per $0.001
	($2.444 - $2.536) x £1 per $0.001
	-$0.092 x £1 per $0.001
Your P/L =	-£92 loss

Natural Gas Notes:

• Spread betting quote obtained from Inter Trader, 2 February 2012
  
  
• Investors can also trade on Natural Gas in euros per $0.001 and US dollars per $0.001
  
  
• In addition, financial spread betting also allows you to access a wide range of other markets, for additional details read:
  
  
  • Stock Market Spread Betting
  • Forex Spread Trading
  • Shares Spread Betting

Demo Accounts for Spread Betting on Natural Gas

Spread Betting
Demo Account

Spread Betting on Commodities

• Spread Betting on Commodities
• Spread Betting on Gold
• Spread Betting on Crude Oil