What is Natural Gas OR NG? A lot of us use this in home for heating and for cooking. But most of us dont know what is it and how is it different from Gasoline OR Diesel? Natural Gas is a fossil fuel. It is usually found with other hydrocarbon fuels. There is an abandunt supply of Natural Gas around the world. See Natural Gas price, chart and analysis below.
Natural Gas Price Trend Analysis
Natural Gas Futures Daily Candlestick Chart
The chart above the daily candles will update automatically with Natural Gas price movements. You need to refresh the page manually.
The trading unit for Natural Gas in MCX is 1250 mmBtu. So generally speaking the lot size of NG is 1250. So 1 rupee of price movement in NG can fetch Rs. 1250 profits for a trader. Intraday traders generally trade for 1-2 rupees profit.
If a trader can trade NG with 60% accuracy and out of 5 trades if he books 3 trades at 3 rupees profit, i.e, total profit booked = 3 x 3 = 9 points. And if he loses 2 trades 1.5 points each so total loss is 2 x 1.5 = 3 points. Net profit in a week = 9 – 3 = 6 points. Net profit value = 6 x 1250 = Rs. 7500.
So a trader can safely earn his living by trading Natural Gas if he maintains a good risk reward ratio. In general NG is a slow mover in MCX market. It also reacts heavily during inventory time. Hence traders are advised to be cautious on inventory day. However you can use line break charts to trade volatile times.
Broker like Zerodha requires around Rs. 22,000 to carry forward 1 NG contract positionally. However in intraday trading the margin requirement is much lower.