Natural Gas (NG)
CFD Trading

iFOREX allows its traders to benefit from the movements in Gas prices by trading the Henry Hub Natural Gas CFDs. Similar to our other CFD commodities, Henry Hub Natural Gas CFD gives you exposure to changes in the value of the commodity's contract but does not result in the delivery of any commodity by or to the client.

The Henry Hub Natural Gas contract is the world’s benchmark contract for Natural Gas trading. The Natural Gas contract is quoted in US Dollars per mmBtu for a contract of 10,000 mmBtu (British thermal units).

Both Gas and Oil help power the world, be it through fueling transportation, electricity generation or residential/industrial heating. However, natural gas is more abundant: at constant levels of production, the world's proven supplies of natural gas will last 65 years, longer than oil's 41 years.

The determination of natural gas’ price is also much simpler. It is primarily driven by its own supply and demand dynamics and is typically less impacted by external sources compared to oil.

When you trade commodity CFDs, your profit or loss will be realized in USD. We will automatically convert any positive or negative balance on your account to your selected account’s currency.

Features of Natural Gas Trading

• Add Natural Gas to other commodities or currencies and build a diverse portfolio in one account.
• Certain currencies, commodities and indices may have a correlation to Natural Gas, which can also provide traders with useful insights, helping with their trades.
• Maximize your purchasing power by using customized leverage of up to 66:1 (where permitted by local regulation).

Trade Example*

Although our CFDs follow the price of the underlying instrument, traders can maximize their trades by using customized leverage.

So for example if you were to invest only $600, your potential purchasing power may be up to 66 times that i.e. $40,000 (where permitted by local regulations).

If the price of gas is at $2.353, for the purpose of this example, you can trade up to 17,000 units (40,000:2.353), whereas with your initial $600 investment you wouldn’t have been able to purchase even one future contract (at the rate of 2.353, one future contract for 10,000 units (mmBtu) would cost $23,530 in an exchange).

As such, if you believe that the value of natural gas is going to rise then it would only be logical to “Buy” it or to go “Long”.

If the price then increases from $2.353 to $2.406 (+2.26%) the profit on that trade would be calculated as follows:

* This is not based on live data and is a hypothetical example. Figures do not take into account the spread.

If the price of natural gas drops below your opening price, then your potential loss is limited to your initial $600 investment.

It is important to note that trading CFDs involves a certain level of risk, but due to our negative balance protection program you can never lose more than you have invested.

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