Natural Gas Spread Betting Guide





Also see Live Natural Gas chart below.



Where Can I Spread Bet on Natural Gas?

You can speculate on natural gas with all of these spread betting platforms:
Financial Spreads ETX Capital Spreadex IG City Index
Gold Daily Financial Spreads Gold Daily ETX Capital Gold Daily Spreadex Gold Daily IG Gold Daily City Index Gold Daily
Gold Futures Financial Spreads Gold Future ETX Capital Gold Future Spreadex Gold Future IG Gold Future City Index Gold Future
UK Crude Oil Daily (Brent) Financial Spreads UK Oil Daily (Brent) ETX Capital UK Oil Daily (Brent) Spreadex UK Oil Daily (Brent) IG UK Oil Daily (Brent) City Index UK Oil Daily (Brent)
UK Crude Oil Future (Brent) Financial Spreads UK Oil Future (Brent) ETX Capital UK Oil Future (Brent) Spreadex UK Oil Future (Brent) IG UK Oil Future (Brent) City Index UK Oil Future (Brent)
US Crude Oil Daily (WTI) Financial Spreads US Oil Daily (WTI) ETX Capital US Oil Daily (WTI) Spreadex US Oil Daily (WTI) IG US Oil Daily (WTI) City Index US Oil Daily (WTI)
US Crude Oil Future (WTI) Financial Spreads US Oil Future (WTI) ETX Capital US Oil Future (WTI) Spreadex US Oil Future (WTI) IG US Oil Future (WTI) City Index US Oil Future (WTI)
Other Commodities Financial Spreads Other Commodities ETX Capital Other Commodities Spreadex Other Commodities IG Other Commodities City Index Other Commodities
The above spread betting markets may also be available with other companies. Also see spread bets comparison notess.


Live Natural Gas Chart




Live Natural Gas Chart




Where Can I Get Live Spread Betting Prices and Charts for Natural Gas?

The chart above gives you a valuable look at how the market is behaving.

However, if you’re trading natural gas, the companies mentioned above have real-time pricing and charts that have more features and indicators.

Example spread betting chart from FinancialSpreads.com:

Natural Gas Spread Betting Guide - Example Chart



Natural Gas Spread Betting Example

Natural Gas Spread Betting Guide
If you are thinking about spread betting on a commodity market like natural gas then, looking at a platform like IG.com, you’d see a quote of $3.848 – $3.878.

As a result, you can bet on natural gas to move above $3.878 or move below $3.848.

When spread trading, you speculate on every unit the market rises or falls; with the natural gas market a unit is $0.010 of the commodity market’s price movement.

For example, let’s say you decide to stake £4 for every cent natural gas increases or decreases.


Spread Betting on the Market to Rise

If you were to go long of natural gas at $3.878 and the commodity market went up then the spread might change to $3.934 – $3.964. If that were to happen, you could close your trade by selling at $3.934.

Profit or Loss = (final level of the market – opening level of the market) x stake per cent
Profit or Loss = ($3.934 – $3.878) x £4 per cent stake
Profit or Loss = $0.056 x £4 per cent
Profit or Loss = £22.40 profit

Nevertheless, if the commodity market had fallen to, as an example, $3.828 – $3.858, you might want to close your position to prevent further losses. In that case, you’d sell the market at $3.828.

So, with the same £4 per cent stake:

Profit or Loss = (final level of the market – opening level of the market) x stake per cent
Profit or Loss = ($3.828 – $3.878) x £4 per cent stake
Profit or Loss = -$0.050 x £4 per cent
Profit or Loss = -£20.00 loss


Spread Betting on the Market to Fall

One of the benefits of spread trading is that you can short sell the markets, i.e. speculate on the markets to drop.

When we started this example, the price was $3.848 – $3.878.

If you shorted natural gas at $3.848 and the “energy” commodity fell then the quote might change to $3.771 – $3.801. Assuming this was the case, you could close your trade for a profit at $3.801.

Profit or Loss = (opening level of the market – final level of the market) x stake per cent
Profit or Loss = ($3.848 – $3.801) x £4 per cent stake
Profit or Loss = $0.047 x £4 per cent
Profit or Loss = £18.80 profit

The markets can of course rise, if the energy market were to rise up to, for example, $3.861 – $3.891, you may decide to close your position to limit your losses. Therefore, you would buy at $3.891.

You would do this with the same £4 per cent stake:

Profit or Loss = (opening level of the market – final level of the market) x stake per cent
Profit or Loss = ($3.848 – $3.891) x £4 per cent stake
Profit or Loss = -$0.043 x £4 per cent
Profit or Loss = -£17.20 loss


Natural Gas (September) market accurate as of 25-Jul-14.

This is a “Futures spread bet” and so it has a particular settlement date when it will close. With this Natural Gas (September) futures market the settlement date is 26-Aug-14.



Natural Gas Practice Accounts

But what if you want to try things out first? Well, the following firms provide demo accounts, i.e. accounts that you can use to see how spread trading works on natural gas without risking any money.




User Questions and Answers on Natural Gas

Leave a Reply