Natural gas powers homes, industries, and power plants globally, offering a cleaner alternative to other fossil fuels. Natural Gas Mini, with its 250 mmBtu size, serves as a smaller-scale futures contract that lowers the barriers for traders, allowing participation in the natural gas market with reduced financial exposure.
Introduction
A major component in the world energy scene, natural gas stands out as a more effective and clean substitute for conventional fossil fuels like coal and oil. Formed over millions of years through the compression and decomposition of organic materials, natural gas is primarily composed of methane and is found alongside oil in the Earth's subsurface layers.
Its clean-burning nature means it emits significantly lower levels of harmful pollutants, making it an attractive choice for reducing carbon footprints. Historically, natural gas seeps were first noted in ancient civilisations, such as in Iran and Greece, where they were often ignited by lightning, creating burning springs.
Today, natural gas is widely used for heating, electricity generation, and as a feedstock in the production of various chemicals. Its versatility extends to being an alternative fuel for vehicles and a critical component in manufacturing goods like glass, steel, and plastics. Natural gas will be essential to effectively supply the world's energy needs, even as the global energy landscape changes to include greener energy sources.
Factors that Impact Natural Gas Market/Price
- Major producers' output or supply: The production levels of major natural gas-producing countries, such as the U.S., Russia, and Iran, directly impact the market. Any change in production, such as increased drilling or supply disruptions due to technical issues or maintenance, can lead to fluctuations in natural gas prices.
- Changing scenarios in natural gas demand: Natural gas demand varies with seasons, economic conditions, and energy consumption trends. High demand during cold winters for heating or hot summers for cooling can drive prices up. Industrial activities also play a significant role in altering demand, impacting market prices accordingly.
- Global geopolitics: Political tensions, sanctions, and conflicts involving major natural gas-producing or transit countries can disrupt supply chains, leading to price spikes. Geopolitical stability is crucial for consistent supply, and any uncertainties can result in significant market volatility.
- Price of crude oil: Crude oil prices influence natural gas indirectly, as they are often linked in terms of production, energy substitution, and market sentiment. When oil prices rise, natural gas prices may follow due to increased costs for extraction and transportation or shifts in demand for alternative energy sources.
Things to Consider Before Trading in Natural Gas Mini
- Market volatility: The price of natural gas may fluctuate significantly depending on a number of factors, such as the economy, weather, and global events. Traders should adjust their risk and be ready for price fluctuations.
- Understanding storage reports: Natural gas storage reports are released weekly and can significantly impact prices. Traders should understand how to interpret these reports and their implications for market dynamics.
- Storage and transportation costs: Consider the costs associated with storing and transporting natural gas, as these can affect market prices. Evaluate how these factors may impact your trading strategy and profitability.
- Regulatory environment: Changes in government regulations, environmental policies, and energy standards can impact natural gas prices. Traders should stay informed about regulatory developments that could affect the market.
Natural Gas Mini Expiry Date Calendar 2024
Contract launch calendar for natural gas mini options and futures (250 MMBtu) for the year 2024.
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Contract Month
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Contract Launch Date (Options)
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Contract Expiry Date (Options)
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Contract Launch Date (Futures)
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Contract Expiry Date (Futures)
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May-24
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April 23, 2024
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May 24, 2024
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February 12, 2024
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May 28, 2024
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Jun-24
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April 23, 2024
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June 21, 2024
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February 12, 2024
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June 25, 2024
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Jul-24
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April 26, 2024
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July 24, 2024
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February 12, 2024
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July 26, 2024
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Aug-24
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May 29, 2024
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August 23, 2024
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February 27, 2024
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August 27, 2024
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Sep-24
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June 26, 2024
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September 23, 2024
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March 26, 2024
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September 25, 2024
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Oct-24
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July 29, 2024
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October 24, 2024
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April 26, 2024
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October 28, 2024
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Nov-24
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August 28, 2024
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November 21, 2024
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May 29, 2024
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November 25, 2024
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Dec-24
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September 26, 2024
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December 24, 2024
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June 26, 2024
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December 26, 2024
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How to Trade in Natural Gas Mini via Angel One?
To trade natural gas Mini via Angel One, follow these steps:
- Open a Demat and Trading Account: First, open a Demat and trading account with Angel One.
- Activate the Commodity Segment: Once your Demat account is ready to trade, activate the commodity segment to trade natural gas mini contracts and other commodities.
- Monitor the Market: Track exchanges like MCX (Multi Commodity Exchange) and NCDEX (National Commodity and Derivatives Exchange) to stay updated on live natural gas mini prices, market trends, and relevant news.
- Place Your Trades: Use the Angel One trading platform and leverage indicators like Bollinger Bands, RSI, and MACD to build your commodity trading strategy.
- Manage Your Risk: To control your risk and guard against big losses on your trades, use measures like stop-loss orders.
