Natural Gas Spread Betting

The CleanFinancial guide to Natural Gas spread betting.

• Where Can I Spread Bet on Natural Gas?
• Live Natural Gas Charts
• Live Natural Gas Prices
• Natural Gas Trading News and Analysis
• Where Can I Trade Natural Gas for Free?
• Where Can I Practice Trading Natural Gas?
• How to Spread Bet on Natural Gas?
• Commodities Spread Betting Guide
• Natural Gas Commitments of Traders Report

Live Natural Gas Chart & Prices

The real-time CFDs chart and prices below offers users a useful guide to the Natural Gas market.


The above Plus 500 chart normally follows the Natural Gas futures contract.

If you would like access to real-time spread trading prices and charts for Natural Gas, you might need a financial spread betting account, readers should note that all accounts are subject to status and suitability checks.

If your application is accepted, you can log in and analyse the live trading charts and prices. On most platforms, these are provided as part of the service. The catch? You are likely to get the odd sales call or email from your chosen online spread betting company.

Of course, if you do trade then you should be aware that spread betting and CFD trading involve a high level of risk to your funds and it’s possible to incur losses that exceed your initial deposit.

Where Can I Spread Bet on Natural Gas?

At the moment, investors can financial spread bet on Natural Gas, as well as an array of similar financial markets, through companies like:

• City Index
• IG

Natural Gas Market Analysis and Trading News

Advanced Charting Packages for Natural Gas

Whilst the specific charting packages differ across the various providers, in order to help your technical analysis, most charts usually have valuable tools such as:

• A wide range of intervals, for example, 3 minutes, 1 hour, 1 week etc
• Different chart views, for example, bar, line and candlestick charts
• Drawing options, for example, trendlines, Fibonacci time zones, arcs and fans
• Chart overlays and indicators, for example, Exponential Moving Average, Parabolic SAR, True Strength Index (TSI) etc

Charts offered by Tradefair also have more advanced aspects, including:

• BackTesting and Analysis functions
• Automated email alerts when your chosen market reaches a certain level
  
  

Sample commodities chart



The following spread betting brokers offer users charts and live prices:

• City Index (read review)
• ETX Capital (read review)
• Financial Spreads (read review)
• Finspreads (read review)
• IG (read review)
• Inter Trader (read review)
• Spreadex (read review)

Where Can I Trade Natural Gas for Free?

Investing always involves an element of risk. Nevertheless, if you want to try a Practice Account (free), where you can make use of trading charts and try spread trading, see below.

When looking at which investment option might work for you, don’t forget that spread trading, in the UK, is tax free*, i.e. it is exempt from income tax, stamp duty and capital gains tax.

If you’re interested in a free trading platform, you should note that investors are able to take a view on Natural Gas without having to pay any brokers’ fees or commissions with providers like:

• City Index
• IG

Free Demo Account

If you’d like to open a (free) Demo Account which allows you to trial financial spread betting, as well as trading markets like EUR/GBP, the DAX 30 and Natural Gas, then it’s worth taking a quick look at:

• Financial Spreads
• Inter Trader

Each of the above spread betting companies currently provide a free Practice Account that allows investors to gain experience with orders, test trading theories and make use of charts.

How to Spread Bet on Natural Gas?

As with a wide variety of financial markets, investors can speculate on futures, such as Natural Gas, to either increase or decrease.

If you were to look at the CapitalSpreads spread betting site, they are currently valuing the Natural Gas June Futures market at $2.230 – $2.260. This means you could spread trade on Natural Gas:

  Finishing higher than $2.260, or
  Finishing lower than $2.230

On the expiry date for this ‘June’ market, 28-May-12.

When placing a spread bet on Natural Gas you trade in £x per $0.001. So, if you chose to have a stake of £3 per $0.001 and Natural Gas moves $0.039 then there would be a difference to your bottom line of £117. £3 per $0.001 x $0.039 = £117.

Natural Gas Futures – Commodity Spread Betting Example

Now, if we consider the above spread of $2.230 – $2.260 and assume:

• you’ve completed analysis of the natural gas market, and
• it leads you to think that the Natural Gas market will close higher than $2.260 by 28-May-12

then you might decide that you are going to buy a spread bet at $2.260 and invest, for the sake of argument, £2 per $0.001.

So, you gain £2 for every $0.001 that Natural Gas increases above $2.260. Nevertheless, it also means that you will make a loss of £2 for every $0.001 that the Natural Gas market falls lower than $2.260.

Looking at this from another angle, should you buy a spread bet then your profit/loss is worked out by taking the difference between the settlement price of the market and the initial price you bought the market at. You then multiply that difference in price by the stake.

Therefore, if, on the closing date, Natural Gas finished at $2.317, then:

Profit = (Final Price – Initial Price) x stake
Profit = ($2.317 – $2.260) x £2 per $0.001
Profit = $0.057 x £2 per $0.001
Profit = £114 profit

Financial spread betting on commodities is not always simple. In this case, you wanted the futures market to increase. Of course, the commodity can also decrease.

If Natural Gas decreased, settling at $2.192, then this means you would end up making a loss and losing on this market.

Loss = (Final Price – Initial Price) x stake
Loss = ($2.192 – $2.260) x £2 per $0.001
Loss = -$0.068 x £2 per $0.001
Loss = -£136 loss

Note: Natural Gas June Futures spread betting price taken as of 26-Apr-12.

Natural Gas Commitments of Traders Report – 15 May 2018 ⁽ⁱ⁾

Futures Only Positions, NYME, Code 23651, (Contracts of 10,000 MMBTUs) ⁽ⁱ⁾

Reporting Firms (i)								Non-Reportable Positions (i)
Non-Commercial (i)			Commercial (i)		Total Reportable (i)
Commitments (i)							Open (i) Interest	Commitments
Long (i)	Short (i)	Spreads (i)	Long	Short	Long	Short		Long	Short
334,448	427,876	519,808	571,092	510,049	1,425,348	1,457,733	1,492,387	67,039	34,654
Changes from 8 May 2018 (i)							Change in (i) Open Interest	Changes from
Long	Short	Spreads	Long	Short	Long	Short		Long	Short
7,249	-23,346	37,385	-7,335	23,968	37,299	38,007	37,764	465	-243
Percent of Open Interest for Each Category of Trader (i)
Long	Short	Spreads	Long	Short	Long	Short		Long	Short
22.4%	28.7%	34.8%	38.3%	34.2%	95.5%	97.7%		4.5%	2.3%
Number of Traders in Each Category (i)							Total (i) Traders
Long	Short	Spreads	Long	Short	Long	Short
119	105	155	76	68	296	254	336
Long/Short Commitments Ratios (i)								Long/Short Ratio
Ratio			Ratio		Ratio			Ratio
1:1.3			1.1:1		1:1			1.9:1
Net Commitment Change (i)
30,595

Also see:

• Commodities COT (Commitments of Traders) Reports
• Commitments of Traders Guide