E-mini Natural Gas Futures (QG): Quarter Size, Cash Settled Henry Hub Contract

Q: Why is QG one quarter the size of NG?

QG covers 2,500 MMBtu and NG covers 10,000 MMBtu, so four QG contracts equal one NG contract. The smaller size lets traders take natural gas positions in smaller quantities.

Q: What are the QG tick size and tick value?

The minimum move is $0.005 per MMBtu, worth $12.50 per QG contract.

Q: Why is the QG tick worth more than the NG tick?

QG moves in half cent increments while NG moves in tenths of a cent. So one QG tick ($12.50) is larger than one NG tick ($10.00), even though QG covers a quarter of the gas.

Q: What is a 10 cent move worth on QG?

A $0.10 per MMBtu move is 20 QG ticks, or $250 per contract.

Q: Is QG physically delivered?

No. At expiration, open QG positions are settled in cash at the final settlement price of the corresponding NG contract. No gas changes hands.

Q: When does a QG contract stop trading?

QG trading ends on the business day before the last trading day of the matching NG contract, so QG expires one business day ahead of NG.

Q: What are the QG day and overnight margins?

QG requires $300 for intraday trading and $1,428 to hold a contract overnight. Current amounts are on the margins page .

Q: What are the QG trading hours?

QG follows the NYMEX natural gas session on CME Globex: it opens Sunday at 5:00 p.m. CT and closes Friday at 4:00 p.m. CT, with an hour long halt beginning at 4:00 p.m. CT on weekdays.

Q: Who uses E-mini natural gas futures?

Traders who want Henry Hub price exposure without a delivery obligation, and smaller commercial hedgers whose gas volumes are only a fraction of a full NG contract.

What Is an E-mini Natural Gas (QG) Futures Contract?

E-mini Natural Gas futures (QG) are listed on NYMEX, part of CME Group, and cover 2,500 million British thermal units (MMBtu) of natural gas, one quarter of the 10,000 MMBtu in a standard Henry Hub Natural Gas (NG) contract. Four QG contracts equal the quantity of one NG contract.

QG is financially settled. Instead of delivering gas, each expiring QG contract is closed out in cash against the final settlement price of the matching NG contract. That lets traders follow Henry Hub prices at a quarter of the standard quantity without a delivery process.

E-mini Natural Gas (QG) Contract Specifications

QG is quoted in dollars and cents per MMBtu and moves in increments of $0.005, half a cent, so each tick is worth $12.50 per contract. That tick is coarser than the $0.001 tick used on NG and MNG. QG trades on CME Globex during the NYMEX natural gas session, and trading in each month ends on the business day before the last trading day of the matching NG contract.

Product:

E-mini Henry Hub Natural Gas

Futures Contract Symbol:

Exchange:

NYMEX (CME Group)

Contract Size:

2,500 MMBtu

Trading Hours:

Sunday to Friday on CME Globex, 5:00 PM to 4:00 PM CT, halted daily from 4:00 PM to 5:00 PM CT

Minimum Price Fluctuation:

$0.005 per MMBtu = $12.50

Contract Months:

Every calendar month for the current year and the next five years; the following year is added once the December contract stops trading.

Settlement Method:

Financially settled (cash) to the NG final settlement price

Exchange Fees:

$0.52/contract

Margin Requirements for E-Mini Natural Gas Futures

Holding Period:

Day Trading Margins

Overnight Margins

Margins:

$300

$1,428

QG margins sit alongside NG and MNG on our futures margins page. For the full size contract see Henry Hub Natural Gas (NG), and for the smallest size see Micro Natural Gas (MNG). To trade QG, open an account or request a commission quote.

Source: CME

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

Market Factors Behind QG Price Moves

Because QG settles against NG, it responds to the same supply and demand information as the standard contract. The points below explain what QG traders follow; they are not a forecast.

The seasonal cycle: gas is usually injected into storage from April through October and withdrawn from November through March, and prices for each delivery month reflect where it falls in that cycle.
Thursday storage numbers: the EIA weekly storage report shows whether inventories rose or fell more than analysts expected.
Temperature outlooks: a colder than normal winter or a hotter than normal summer raises demand for heating or power generation.
Supply: U.S. dry gas production and pipeline flows set how much gas is available to meet that demand.
Export demand: feedgas deliveries to LNG export terminals on the Gulf Coast add a large source of demand.

With a $12.50 tick, a one cent move in natural gas equals $25 per QG contract. Trading QG involves substantial risk of loss.

E-mini Natural Gas (QG) Futures: Common Questions

What are E-mini natural gas futures (QG)?

E-mini natural gas futures give exposure to 2,500 MMBtu of Henry Hub natural gas per contract, a quarter of NG. QG is listed on NYMEX and closes out in cash at expiration.

Why is QG one quarter the size of NG?

What are the QG tick size and tick value?

Why is the QG tick worth more than the NG tick?

What is a 10 cent move worth on QG?

Is QG physically delivered?

When does a QG contract stop trading?

What are the QG day and overnight margins?

What are the QG trading hours?

Who uses E-mini natural gas futures?

How is the QG price related to Henry Hub?

Where can I see real time QG quotes?