Natural Gas Trading

Natural Gas CFDs trading with a regulated broker at AvaTrade

Natural Gas Trading

As a leading regulated broker in forex and CFD’s, Friedberg Direct offers several advantages for natural gas and other energy products.

Start trading natural gas with Friedberg Direct now and enjoy the benefits of trading with a Canadian regulated broker!

What Is Natural Gas and Liquefied Natural Gas

Natural gas is a by-product of fossil fuel formation, mainly decomposed organic matter deposited into the earth over the past 550 million years. The reserves are deep in the ground near other hydrocarbons like coal and crude oil.

Natural gas is treated and transformed into clean fuel to be used by various industries and products. Natural gas is a versatile fossil fuel used mainly for heating, cooking, transportation, generating heat and electricity.

Liquefied natural gas is a natural gas that has been liquefied for easy transport and storage. Natural gas is a major source of energy; however many places requiring it are far from the gas fields.

It is therefore cooled and made into a liquid. With its volume smaller (natural gas in its liquid size is 600 times smaller than in gaseous form), it is safer to store and ship overseas. The liquid is non-toxic and colourless. It will also not catch fire in this state.

Natural Gas Heaters and Natural Gas Power Plants

People now use natural gas heaters for many reasons that are both environmental and financial. These heaters/furnaces are not expensive to maintain, they do not break down often, and they use the cheapest and cleanest fossil fuel available. Natural gas heaters work well in any home.

Natural gas power plants and how they work: One large power plant can generate enough electricity for about 200,000 homes. The incredible thing is that even the fossil fuel it burns has large amounts of energy. These natural gas power plants burn huge amounts of fuel. Every drop is rich in power, which is released as heat.

The heat spins a machine called a turbine, which powers a generator. Benefits include fewer impurities and less pollution; and – with new technology – cleaner energy production is being made possible and cheaper than other fuels.

Natural Gas Price

Various factors can affect natural gas prices, including:

  • The impact of seasonal weather including tropical storms and hurricanes.
  • Economic growth: The demand for this resource goes up in a strong economy; with this, the price of natural gas goes up.
  • Crude oil price variances: if the price of crude oil goes up, the products produced in the refineries also go up.
  • Natural gas supply: The reserves kept across the US have a big impact on prices. Reduction in US natural gas inventories indicates upcoming mass purchase, which drives demand and the price of natural gas futures higher
  • Time spreads: when traders bet on the upcoming season, it could be warmer or colder, creating a higher demand; and the price of natural gas increases.

There are also different markets within the natural gas market. A spot market is where prices represent the supply and demand that day. If there is a shortage, then the prices can become volatile and change rapidly.

The futures market is determined mostly by variables on expected supply and demand of upcoming seasons. This tends to be less volatile.

Natural Gas Market

Exchange: NYMEX
Trading Hours: 22:00 – 20:59

Trading Conditions at Friedberg Direct:

  • Minimum Trade Size: 100
  • Increment: 0.001
  • Options: Monthly
  • MT4 Symbol: NATURAL_GAS

Start trading natural gas with Friedberg Direct today and benefit from our educational centre, the Autochartist daily market analysis tool, which will send you updates multiple times per day to keep you informed. Friedberg Direct is a leading Canadian CFD Broker. We offer commodities trading along with Forex, and stock trading from a single platform.

Register Now and begin trading Natural Gas CFDs with Friedberg Direct.