Henry Hub Natural Gas Futures (NG): Contract Specs, Tick Value and Margins

Q: Why is Henry Hub the pricing point for U.S. natural gas?

Henry Hub is a pipeline interchange in Louisiana that connects many interstate and intrastate pipelines. Its access to supply and to major markets made it the delivery point for NG and the reference price for regional gas trading.

Q: How much is one tick worth on an NG contract?

One tick is $0.001 per MMBtu. With 10,000 MMBtu in a contract, that equals $10.00 per NG contract.

Q: How much does a 10 cent move change one NG contract?

A $0.10 per MMBtu move is 100 ticks, or $1,000 per NG contract.

Q: What is one NG contract worth at a $3.00 gas price?

Multiply the price by 10,000. At $3.00 per MMBtu, one NG contract represents $30,000 of natural gas.

Q: Is NG physically delivered?

Yes. Positions still open when trading ends are settled by delivery of gas at Henry Hub. Speculative traders usually offset or roll their positions before the last trading day.

Q: When does an NG contract stop trading?

Trading ends on the third last business day of the month before the delivery month. For example, the January contract stops trading near the end of December.

Q: How much margin does an NG contract require at Lincoln Park Financial?

Day trading one NG contract requires $1,000, and holding it past the session requires $5,691. Check the margins page for current figures, since both change with volatility.

Q: When can I trade NG futures?

On CME Globex from Sunday at 5:00 p.m. CT to Friday at 4:00 p.m. CT. Trading halts for 60 minutes beginning at 4:00 p.m. CT each weekday.

Q: What is the EIA weekly storage report?

The U.S. Energy Information Administration publishes the amount of working gas in underground storage every Thursday at 9:30 a.m. CT. NG is often active around the release as traders compare the reported change with expectations.

What Are Henry Hub Natural Gas Futures (NG)?

Henry Hub Natural Gas futures (NG) are the standard natural gas contract on NYMEX, part of CME Group. Each contract covers 10,000 million British thermal units (MMBtu) for delivery at the Sabine Pipe Line Henry Hub in Erath, Louisiana, a junction where many interstate and intrastate pipelines meet. Because so much gas changes hands there, the NG price is the reference most U.S. natural gas contracts and price reports are quoted against.

NG is quoted in dollars per MMBtu, moves in $0.001 increments worth $10.00 per contract, and trades on CME Globex for about 23 hours each weekday. CME Group also lists two cash settled versions: E-mini Natural Gas (QG) at one quarter of the size and Micro Henry Hub Natural Gas (MNG) at one tenth.

Natural Gas Futures Contract Specifications

Product:

Henry Hub Natural Gas

Symbol:

Exchange:

NYMEX (CME Group)

Contract Size:

10,000 MMBtu

Trading Hours:

Sunday 5:00 PM to Friday 4:00 PM CT, with a 60 minute halt at 4:00 PM CT each weekday

Minimum Tick:

$0.001 per MMBtu = $10.00 per contract

Contract Months:

Monthly contracts listed for the current year

Settlement:

Physical delivery at Henry Hub, Louisiana

Exchange Fee:

$1.62/contract*

How Much Is One Tick in Natural Gas Futures Worth?

NG prices move in increments of $0.001 per MMBtu, a tenth of a cent. Multiplied by the 10,000 MMBtu in each contract, one tick changes the value of an NG position by $10, and a one cent move ($0.01) equals $100.

10,000 MMBtu × $0.001 = $10 per tick

Price Move	Ticks	Value
$0.001	1	$10
$0.005	5	$50
$0.010	10	$100
$0.050	50	$500
$0.100	100	$1,000

Natural Gas Futures (NG) Margin Requirements

Holding Period:

Day Trading Margins

Over Night Margins

Margins:

$1,000

$5,691

Lincoln Park Financial lists the NG day trading margin for positions opened and closed during the intraday session. An NG position still open after the session must meet the overnight margin, which follows the NYMEX requirement and is much higher because natural gas can gap when the market reopens or after the weekly storage report.

Official Exchange Source: CME Group Natural Gas (NG) Contract Specifications

The above information is derived from sources believed to be accurate. It is provided without guarantees and is subject to change without notice.

NG appears with every other energy contract on our futures margins page. For smaller natural gas positions, compare E-mini Natural Gas (QG) and Micro Natural Gas (MNG); for crude oil, see Micro WTI Crude Oil (MCL).

Planning to trade Henry Hub gas? Apply for an NG futures account or get a commission quote for natural gas.

What Moves Henry Hub Natural Gas Prices?

Natural gas is one of the more volatile futures markets. The factors below are the ones NG traders follow most closely; they describe how the market is analyzed, not where prices will go.

Weather: heating demand in winter and power plant demand for air conditioning in summer drive U.S. consumption. Traders track heating and cooling degree days and the NOAA 6 to 10 day and 8 to 14 day temperature outlooks.
Storage: the U.S. Energy Information Administration (EIA) Weekly Natural Gas Storage Report, released Thursdays at 9:30 a.m. CT, shows the change in gas held underground. Traders compare it with the prior week, the five year average and survey estimates.
Production: output from shale regions such as Appalachia, the Permian Basin and the Haynesville sets how much supply reaches the market, and rig counts are watched as a signal of future drilling activity.
LNG exports: Gulf Coast liquefied natural gas terminals draw large volumes of U.S. gas for export, so plant outages, maintenance and new export capacity affect demand at Henry Hub.
Infrastructure and hurricanes: pipeline constraints and Gulf of Mexico storms can disrupt production, processing or LNG shipments.

Futures trading involves substantial risk of loss, and natural gas can move several percent in a single session.

Henry Hub Natural Gas (NG) Futures FAQs

What are Henry Hub natural gas futures (NG)?

NG is the NYMEX futures contract for 10,000 MMBtu of natural gas delivered at Henry Hub in Erath, Louisiana. It is the main price reference for U.S. natural gas.

Why is Henry Hub the pricing point for U.S. natural gas?

How much is one tick worth on an NG contract?

How much does a 10 cent move change one NG contract?

What is one NG contract worth at a $3.00 gas price?

Is NG physically delivered?

When does an NG contract stop trading?

How much margin does an NG contract require at Lincoln Park Financial?

When can I trade NG futures?

What is the EIA weekly storage report?

How do NG, QG and MNG differ?

Why do winter NG contracts trade at different prices than summer contracts?