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.
Henry Hub Natural Gas
NG
NYMEX (CME Group)
10,000 MMBtu
Sunday 5:00 PM to Friday 4:00 PM CT, with a 60 minute halt at 4:00 PM CT each weekday
$0.001 per MMBtu = $10.00 per contract
Monthly contracts listed for the current year
Physical delivery at Henry Hub, Louisiana
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 |
Day Trading Margins
Over Night Margins
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.
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.
Futures trading involves substantial risk of loss, and natural gas can move several percent in a single session.
Speak with our experienced futures brokers at 312-500-4730 to discuss how we can service your futures trading needs.
