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How to Invest in Natural Gas Options?

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Invest in Natural Gas Options

Natural gas is one of the finest and most crucial fossil fuels in the world. Learn how to invest in Natural Gas’s preeminent commodities in this helpful guide or blog post.

Natural Gas Options

Options are another popular way for investors to invest in the natural gas market. Options are how traders speculate on the market and decide on buys and calls. It should be noted that both options would give traders the right to trade but not the obligation to trade the asset before the deadline – the last part of the sentence is crucial and should be emphasized.

How to Invest in Natural Gas Options

Investing in Natural Gas is a simple process and in the section below we have outlined the steps you can take before making your first investment.

Decide on an investment strategy. Before you begin, you should consider whether you are an active or passive investor. It is also useful to decide how much risk you want to take, as this will guide you when you invest.

● Set a budget

You may have already decided how you will risk, and it is a good idea to set a budget and stick to it. You may consider allocating a small portion of your portfolio to natural gas investments.

● Choose between long and short-term

By doing your research, you may have decided on your natural gas price outlook. It is recommended to choose how long you plan to invest between long-term and short-term.

● Find an investment platform

Finally, you’re ready to make your first natural gas investment. You need a broker who offers the opportunity to invest in the market. Further down the page, we have highlighted some of the best brokers that you can use.

● Do your research

You need to do a balanced study of the natural gas market while planning how you want to invest in it. At the bottom of this page, we have explained the various factors that drive the market.

Ways to Invest in Natural Gas in India

Natural gas is widely traded and invested, giving you a wide range of options. In the section below, we’ve outlined the different ways you can invest in natural gas and provided a brief explanation of each.

Invest in natural gas stocks

Many oil companies have invested heavily in natural gas, and buying their stocks allows you to enter the market. You can also invest in smaller exploration companies looking for natural gas or in companies dealing with its transportation. The share price of natural gas companies is likely to be correlated with the commodity.


Invest in a Natural Gas ETF

Exchange-traded funds that track natural gas are often the easiest way to invest in it. You’ll find ETFs that cover the energy sector, and the broader commodity market and track the future prices of natural gas. ETFs that track the price of futures offer investors easy and cheap access to clean natural gas prices.

Invest in natural gas mutual funds


Mutual funds are similar to ETFs (Equity Traded Funds) and investors can buy shares in them. However, these are managed funds where a professional manager buys and sells assets according to his expertise. Some funds invest in the energy sector, including many natural gas companies.

Is natural gas a good investment in 2023?


Yes, it can be, although there are a few things to consider before investing. Much of what we’ve covered on this page will help drive up natural gas prices this year, especially due to Russia’s invasion of Ukraine. Russia supplies almost a quarter of the natural gas consumed in Europe, and many pipelines pass through Ukraine. The effects of war are most likely to raise prices, although conflicts are inherently uncertain and trade should be cautious.

Outside of the war, energy prices generally rose, especially in Europe. Demand from India and China continues to grow, and both factors combined could have a positive impact on natural gas prices. Global inflation has also crept higher and is worth watching as gas prices rise along with them.


Natural gas is the third largest source of energy in the world except for oil and coal. It is a fuel that has been burned for thousands of years. It is also a crucial part of our day-to-day life. The price of natural gas is relatively low compared to other energy sources and it can be imported from various sources. However, in recent years, the world’s population has increased, which increases the demand for natural gas.

If you want to invest in Natural Gas options, please open an account with us.

If you want to know more about natural gas options, please click here.

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Table of Contents

• 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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