Volatility is one of the vital factors that make natural gas trading an ideal option for the investors and traders out there. It is important to note that there can be several factors affecting the prices of natural gas and a trader should stay updated with these factors in order to make a sound decision. These factors can vary from weather conditions in a particular location to the supply and demand of natural gas. Before further ado, let’s get started with the basic of natural gas trading and how does it work.

The working of Natural Gas Trading

You might be wondering “why should I trade natural gas?” Is it any better than the regular commodity trading? What profits can I expect? First of all, natural gas is one of the super famous trading commodities among day traders. Have you ever invested in crude oil, gold, and silver? Well, the good news is natural gas trading involves the same strategies as crude oil or gold trading. Primary and technical analysis can be a useful strategy to stay informed with the current market condition of Natural gas and make a better trading decision. Similarly, the traders must conduct thorough research on the factors that have an impact on the prices of this commodity. Other than that, it is imperative to know the major manufacturers of natural gas (which, in the current times, are Royal Dutch Shell, BP, and etc). This post will cover the fundamentals of natural gas trading, it’s working, and some advanced strategies that can help traders make better strategies.

Fundamentals of Natural Gas Trading

Are you planning to invest in natural gas commodity? As long as you make the right strategies and conduct proper research, you are going to make a good profit from this commodity. Let’s have a look at some important tips on how to trade natural gas:

  • Know the factors that affect Natural gas price

Just like other products on the market, the price of natural gas is mainly influenced by the current supply and demand for this commodity in the marketplace. The increase in the production and supply of natural gas automatically decline its demand whereas the decreased supply of the commodity leads to heightened price. Here are the four major aspects that alter the demand and supply of natural gas:

Weather – Abnormal weather conditions have a negative impact on the demand and supply of natural gas. On the contrary, a favourable climate can increase the products’ demand and prices.

   Open Free Natural Gas Trading Account

Storage – Another factor that affects the price of natural gas is the supply of this commodity in storage. If there is a deficiency of natural gas in storage, the price will ramp up. On the other hand, the surplus commodity in storage leads to increased supply and lower prices.

Alternatives – Economics suggest the prices of substitute products have a great influence on your product’s prices. The substitute for natural gas, specifically the more eco-friendly solutions like solar and wind power, can impact natural gas prices. As the focus of the people is shifting more towards “going eco-friendly”, the demand for its alternatives may increase in the future.

Economic Growth – With the development of an industrial sector in an economy, the prices of the natural gas will go up. This happens because the demand for natural gas will rise.

Pay Attention to the Main Producers of Natural Gas

The accurate natural gas strategy involves paying attention to the chief producers of natural gas in the world. As discussed above, the development of an economy leads to a rise in the demand for fertilizers, energy sources, commercial and industrial goods/services, and other products. Hence, the growth of an economy increases the price of natural gas as a more commercial and industrial sector will need the commodity.

In the current times, Russia and the United States are the major consumers of natural gas. They hold a significant amount of this commodity. It is important for traders to keep an eye on the natural gas consumption and production in these countries to make a better trade analysis.

Also Read: 5 Surprising Crude Oil Facts You Must Know

Use Technical Analysis for Trading Natural Gas

Fundamental and technical analysis is the best possible way to know the past trends of natural gas trading. Note that the price of natural gas is likely to change in a recurring pattern. It mainly happens because of the weather condition. Natural gas prices are likely to be more in summer and winter months, while the same declines in other months. You can say that its price pattern is cyclical by nature, making it easy for traders to predict the prices of this commodity ahead of time.

These were the top strategies that can be used to make an effective trading decision. Follow these tips before getting started with natural gas trading. Good Luck!

Also Read: Strategies for Trading the Gold-Silver Ratio


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It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/
2 Charanpreet GillWhole Time
3 Charanpreet GillCompliance
4Manpriya GillDesignated
5Kewal GillDesignated

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