Henry Hub Natural Gas (NG) Futures allow market participants significant hedging activity to manage risk in the highly volatile natural gas price, which is driven by weather-related demand. They also provide efficient transactions in and out of positions. Natural gas futures are:
The third-largest physical commodity futures contract in the world by volume
Widely used as a national benchmark price for natural gas, which continues to grow as a global and U.S. energy source
An independent, stand-alone commodity
Things to know about the contracts:
Natural gas futures prices are based on delivery at the Henry Hub in Louisiana.
Traded electronically on CME Globex and off-exchange for clearing only as an EFS, EFP or block trade through CME ClearPort.
Options types include American, calendar spread, European and daily.
CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs).
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