NG (Natural Gas Futures)
The Natural Gas (Henry Hub) futures contract on NYMEX — 10,000 MMBtu per contract with $0.001 tick size and $10 per tick. One of the most volatile commodity futures.
What is NG (Natural Gas Futures)?
NG is the symbol for the Henry Hub Natural Gas futures contract, traded on NYMEX (part of CME Group). Each contract represents 10,000 MMBtu (million British thermal units) of natural gas, with delivery referenced to Henry Hub in Erath, Louisiana. At $3.50/MMBtu, one NG contract represents $35,000 of notional exposure. The tick size is $0.001 per MMBtu, so each tick equals $10 in P&L (10,000 × $0.001).
NG is among the most volatile commodity futures available to retail traders. Daily ranges of $0.10-$0.30/MMBtu are normal ($1,000-$3,000 per contract dollar swing), and weather-driven cold snaps, hurricane season disruptions, or LNG export news can produce $0.40-$1.00/MMBtu moves in single sessions. Annual peaks during severe winters have seen 50-100% price swings over weeks.
This volatility profile makes NG fundamentally different from index or even oil futures. Most prop firm NG trading is event-driven (EIA storage Thursday 10:30 AM ET, weather forecasts, hurricane tracks) rather than technical chart-based intraday trading.
How NG (Natural Gas Futures) works
NG contract specifications (May 2026):
- Symbol: NG (sometimes NG1! or @NG)
- Exchange: NYMEX Globex (CME Group)
- Underlying: Natural Gas, Henry Hub (Louisiana) delivery
- Contract size: 10,000 MMBtu
- Tick size: $0.001 per MMBtu
- Tick value: $10 per tick
- Point value (per $1/MMBtu move): $10,000 per contract
- Contract months: All 12 months traded; winter months (Dec/Jan/Feb) typically most active
- Trading hours: Sun 6:00 PM ET-Fri 5:00 PM ET, 1-hour daily break
- Settlement: Physical delivery available; most positions cash-settled or rolled
Margin: Day-trading $1,500-$4,000 per contract at most prop firms — highest among major energy contracts due to NG’s volatility. NYMEX initial margin $10,000-$20,000 (varies materially with seasonal vol).
Key catalysts:
- EIA Natural Gas Storage Report: Thursdays 10:30 AM ET — typically produces $0.05-$0.20/MMBtu moves in 60 seconds
- Winter weather forecasts: Cold snaps drive heating demand, can produce $0.20-$0.50/MMBtu daily moves
- Hurricane season: June-November storms can disrupt Gulf Coast production/LNG exports
- LNG export news: Capacity announcements, Asian demand shifts
When prop firm traders use NG: EIA storage plays (Thursday), winter weather positioning (December-February), hurricane-season volatility, LNG-export news. Few traders use NG for continuous intraday trading due to extreme volatility.
Worked example
Setup: Trader on Apex $100K account holds 1 NG contract long from $3.50/MMBtu ahead of cold-front weather news, stop at $3.45 ($500 risk), target at $3.65 ($1,500 reward). Risk/reward 1:3.
Outcome — cold front confirms:
- Weather updates over next 18 hours show extended cold pattern.
- Price ramps to $3.65 by next session close.
- Gross P&L: +$0.15 × $10,000 = +$1,500
- Commission ~$4 round-trip → Net ~$1,496
Comparison vs CL or GC for similar setup:
- 1 NG winning trade: $1,500 from a 4.3% price move ($3.50 → $3.65)
- 1 CL equivalent move: $3.40/barrel = +$3,400 from a 4.3% move ($80 → $83.40)
- 1 GC equivalent move: $103/oz = +$10,300 from a 4.3% move ($2,400 → $2,503)
- NG dollar P&L per percentage move is SMALLEST among major energy/metal contracts despite being most volatile percentage-wise
Apex $100K drawdown context: Trailing drawdown $3,000. 1 NG at $500 stop = 17% of drawdown buffer per loss — large. Most NG traders use MNG or stay flat unless a high-conviction weather/storage setup is active.
NG (Natural Gas Futures) vs related concepts
Side-by-side comparison of NG (Natural Gas Futures) against the most commonly confused alternatives.
| Concept | Definition | Category |
|---|---|---|
| NG (Natural Gas Futures) this term | The Natural Gas (Henry Hub) futures contract on NYMEX — 10,000 MMBtu per contract with $0.001 tick size and $10 per tick. One of the most volatile commodity futures. | Specific Contracts |
| CL (WTI Crude Oil Futures) | The WTI Crude Oil futures contract on NYMEX — 1,000 barrels per contract with $0.01 tick size and $10 per tick. The most actively traded oil futures contract in the world. | Specific Contracts |
| GC (Gold Futures) | The standard Gold futures contract on COMEX — 100 troy ounces per contract with $0.10 tick size and $10 per tick. The dominant gold trading vehicle for futures prop firms. | Specific Contracts |
| SI (Silver Futures) | The Silver futures contract on COMEX — 5,000 troy ounces per contract with $0.005 tick size and $25 per tick. Higher volatility cousin of gold; smaller liquidity but bigger swings. | Specific Contracts |
| Futures Contract | A standardized agreement to buy or sell a specific quantity of an underlying asset at a predetermined price on a specified future date — the foundational instrument of futures markets. | Futures Mechanics |
| Point Value | The dollar value of a one-point price movement on a futures contract — equal to the contract multiplier; a key input to position sizing math. | Futures Mechanics |
| Margin | The capital deposit required to open and hold a futures position — set by the exchange (initial margin) and broker (day-trade margin), typically 5-15% of contract notional value. | Futures Mechanics |
Why traders fail NG (Natural Gas Futures)
Treating NG like other energy contracts. CL daily volatility is 1-3%; NG daily volatility regularly exceeds 5%. Position sizing that works on CL is dangerous on NG. Always cut NG size relative to CL (typical: 25-50% of CL position size in dollars).
Holding NG overnight during winter without flat-management. Winter overnight gaps of $0.20-$0.50/MMBtu ($2,000-$5,000 per NG contract) are common. Stops left in market during cold snaps or warming forecasts may fill far from intended levels.
Trading NG without checking the EIA storage calendar. EIA Natural Gas Storage Report (Thursdays 10:30 AM ET) is a scheduled volatility event. Most prop firm NG traders explicitly position around it or stay flat through it.
Sizing NG based on tick value alone. NG tick is $10, same as ES tick value. But NG moves 100+ ticks per day vs ES 30-50 ticks. The DAILY DOLLAR exposure on NG is 2-3x ES at equal contract count. Always size by realized daily range, not just tick value.
Frequently asked questions about NG (Natural Gas Futures)
What is NG futures?
NG is the symbol for the Henry Hub Natural Gas futures contract on NYMEX (CME Group). Each contract represents 10,000 MMBtu of natural gas with delivery referenced to Henry Hub, Louisiana. Tick size is $0.001 per MMBtu ($10 per tick), with a multiplier of $10,000 per $1/MMBtu move.
How much is one tick on NG?
One tick on NG is $0.001 per MMBtu and equals $10 in profit or loss ($0.001 × 10,000 MMBtu = $10). So a $0.05/MMBtu move is 50 ticks ($500). A $0.10/MMBtu move is 100 ticks ($1,000).
Why is natural gas so volatile?
NG volatility is driven by weather (heating/cooling demand), storage levels (released weekly via EIA), hurricane disruptions to Gulf Coast production, and LNG export trends. Unlike oil which has global storage and producer flexibility, natural gas storage is regional and limited — small demand surprises produce large price moves. Daily volatility regularly exceeds 5%.
What is the day-trading margin for NG?
Day-trading margin for NG is $1,500-$4,000 per contract at most futures prop firms — highest among major energy contracts due to natural gas's extreme volatility. The NYMEX exchange initial margin for overnight holds is approximately $10,000-$20,000 per contract.
When are EIA Natural Gas Storage reports?
EIA Natural Gas Storage Report is released every Thursday at 10:30 AM ET (with rare schedule shifts around US holidays). It typically produces $0.05-$0.20/MMBtu moves in 60 seconds — so a single 1-NG contract position experiences $500-$2,000 immediate dollar swings. Most prop firm NG traders flatten before the release or position with appropriately sized stops.