Trading Spot Natural Gas CFDs

A Contract for Difference (CFD) is a popular financial instrument for trading spot natural gas that allows traders to speculate on the price movements of natural gas without owning the physical commodity. CFDs traders can open a long or short position, providing traders with the opportunity to profit from both rising and falling markets.

Understanding Natural Gas

Natural gas is primarily used as an energy source used for heating, electricity generation, and as a feedstock for various industrial processes, such as fertilizer and other chemical production. Mined natural gas is extracted from underground reservoirs and transported via pipelines or liquefied natural gas (LNG) carriers.

The price of natural gas is influenced by various factors, including supply and demand dynamics, weather conditions, and geopolitical events. As a finite resource it is subject to production constraints, and changes in supply and demand, all of which can lead to significant price fluctuations.

Spot Price

The spot price of natural gas refers to the current market price for immediate delivery of the commodity. It represents the cost to buy or sell natural gas in near real-time. Spot Natural Gas CFDs provide immediate exposure to the market.

How it works

Open a trading account.
Long or Short positions: Decide whether to go long (buy) if you believe the price will rise, or go short (sell) if you anticipate a price decline.
Leverage: CFDs provide traders with the opportunity to use leverage, allowing them to control a larger position with a smaller deposit. (It is important to understand leverage thoroughly before trading, as it amplifies both potential profits and losses.)
Use your preferred platforms, such as MetaTrader or cTrader, to place your desired trades.

Benefits and risks of Spot Natural Gas CFD Trading

When trading Commodity CFDs like Spot Natural Gas, traders do not need to deal with the complexities of owning and storing the physical asset.
You can trade both rising and falling markets, taking advantage of any price movement.
The natural gas market is relatively liquid, offering ample opportunities for trading.
Natural gas prices can be highly volatile, leading to substantial price swings.

Trading Spot Natural Gas CFD

Research and Analysis: Stay informed about the natural gas market by conducting thorough research and using technical and fundamental analysis.
Risk Management: Traders should determine appropriate risk management techniques for their situation. This may using stop-loss and take-profit levels, to protect capital.
Stay Updated: Keep an eye on market news, weather reports, and geopolitical events that could influence natural gas prices.
Practice with Demo Accounts: Many brokers offer demo accounts, allowing you to practice and refine your trading strategies without risking real money. Open a demo account with GO Markets here.

Spot natural gas CFD trading is a dynamic and potentially rewarding way to participate in the energy markets.

Why trade Commodities with GO Markets?

Trade with leverage

Commodities are traded on margin – choose your preferred available leverage (limits apply).

Competitive spreads

We give you tight, competitive spreads across our full range of commodities

Fast trade execution

Low latency and efficient price feeds mean you enjoy quick trade execution

Lower trading cost

Compared to other instruments commodities attract a much lower cost, so you trade with less expense

Trade across devices

Our mobile MT4 & MT5 trading platforms allow commodity trading across your preferred devices

Trade long and short

You can take long or short positions on commodities as you only trade the price movements

Spot Natural Gas Instrument

Instrument	Symbol	Spread	Lot Size	Trading Hours (Platform time)
Spot Natural Gas	NGAS	0.013	10,000 MMBtu	01:00-24:00

GO trading in just a few steps

1. Confirm your identity

In just minutes we can verify your identity and create your account.

2. Fund account

Fund your account with the minimum deposit.

3. Place your trade

Take a position in your choice of instrument.

Try free demo Open Account

FAQs

How does Commodity CFD trading work?: Commodities are usually traded in exchanges that specialise in these products, like the New York Mercantile Exchange (NYMEX) or the London Metal Exchange. Commodity CFDs are traded using standard size lots – e.g. 1,000 barrels of crude oil. When trading commodities with GO Markets, you are actually trading it as a CFD, which means you are only trading the price movement and not the actual commodity. This gives you the flexibility to trade a fraction of the standard contract. So, instead of trading 1,000 barrels of oil, you can trade a smaller lot of 100 barrels. This is ideal particularly if you are just starting out in trading commodities, as you can set aside a smaller amount of your trading capital to get exposure in this liquid market.

More than just Gas

Diversify your portfolio with the wide range of CFDs from GO Markets. Trade Forex, Indices, Shares, Commodities like gold, silver, oil, and much more. Follow the links below to learn more about our other products.

Ready to start trading? Open an account or try our Free Demo