Henry Hub Natural Gas (NG)

What NG tracks

NG is the NYMEX Henry Hub Natural Gas futures contract, the main US natural gas benchmark. One contract covers 10,000 million British thermal units (MMBtu), and prices are quoted in dollars per MMBtu.

The contract is physically delivered at the Henry Hub, a pipeline interconnection point near Erath, Louisiana. Natural gas is known for large, fast price swings, especially in winter. That makes NG one of the more volatile contracts covered on FuturesPro, so position size matters a great deal.

NG contract specifications

Specifications come from CME Group: NYMEX Rulebook Chapter 220, CME Micro Henry Hub fact card. CME can change trading hours, listed months and other terms, and holiday schedules differ, so confirm the details on CME Group's site before you trade.

What moves NG

Several forces tend to drive NG prices. None of them predicts direction on its own, and they often pull in different ways at the same time.

• Weather. Heating demand in winter and power demand for air conditioning in summer drive a large share of gas use. Forecast changes can move prices sharply.
• Storage reports. The US Energy Information Administration publishes a weekly natural gas storage report, usually on Thursdays. Surprises versus expectations often cause big moves.
• Production. Output from US shale regions and pipeline maintenance affect supply.
• LNG exports. Demand from liquefied natural gas export terminals links US prices more closely to global markets.
• Expiry dynamics. The front month can behave differently near its last trading day as positions roll to the next month.

Example P&L math

Say NG rises by $0.10 per MMBtu while you hold one long contract. That is 100 ticks of $10:

• 100 ticks × $10 = $1,000 per contract.
• A short position would lose the same $1,000. Losses and gains are symmetric before costs.
• On Micro Henry Hub Natural Gas (MNG), which covers 1,000 MMBtu, the same move is worth $100.

These figures exclude commissions, exchange fees and slippage. Those costs shrink a winning trade and add to a losing one.

Our tick value calculator and position size calculator currently cover the original 16 contracts on FuturesPro and do not include NG yet. You can still do the math by hand using the tick value and point value above.

Margin

CME Group sets minimum performance bonds (margins) for every contract, and each broker then sets its own requirement, which can be higher. Many brokers also offer lower day-trading margins for positions closed before the session ends. These figures change often, especially when markets get volatile, so we do not quote a number here. Check your broker's current margin page before you trade, and compare brokers on our futures brokers page. Remember that margin is not the most you can lose. Losses on a futures position can exceed the margin you deposit.

NG vs MNG

CME lists a smaller Micro Henry Hub Natural Gas contract, MNG, at one-tenth the size of NG. MNG is financially settled, and it stops trading one business day before the matching NG contract expires. We do not have a separate guide for MNG yet, so check its CME spec page for full details.

When the smaller contract fits: smaller accounts, learning, and strategies that need to scale in small steps. Micro contracts can trade less actively than the full-size contract, so check the bid-ask spread before you rely on one. When NG fits: larger accounts and traders who need the most active market, accepting that each tick is worth $10.

Position sizing

A common approach is to decide how many dollars you are willing to lose on a trade, then work out how many contracts fit. For example, with $200 of planned risk and a $0.03 stop on NG, each contract risks $300, so even one contract exceeds that limit. You would need a tighter stop, a larger risk budget or a smaller contract.

This example ignores commissions, fees and slippage, which make real losses larger. Stops can also fill worse than planned in fast markets.

Expiry and rolling

NG is physically delivered. If you hold a position after the last trading day, you can end up making or taking delivery, which retail and prop firm accounts are not set up for. Brokers usually require you to close or roll before a cutoff they set, which can be earlier than the exchange's last trading day. Check the CME calendar for exact dates each month.

Related contracts

• Crude Oil (CL)
• Micro WTI Crude Oil (MCL)
• Copper (HG)
• Corn (ZC)

See every contract we cover on the futures contracts page.

Frequently asked questions

What is the tick value of NG?

One minimum tick on NG is $0.001 per MMBtu, worth $10 per contract. The point value is $10,000 per $1.00 move ($100 per $0.01).

What are the trading hours for NG?

Sunday to Friday, 6:00 p.m. to 5:00 p.m. ET, with a 60-minute break starting at 5:00 p.m. ET (5:00 p.m. to 4:00 p.m. CT). Holiday hours differ, so check CME Group's holiday calendar.

Is NG cash-settled or physically delivered?

NG is physically delivered. The last trading day rule: third last business day of the month before the contract month.

How much margin do I need to trade NG?

Margins are set by CME and then by each broker, and they change with market conditions. Check your broker's current margin page, and see our futures brokers comparison.

Why is natural gas so volatile?

Gas demand depends heavily on weather, and storage and pipeline capacity cannot adjust quickly. When forecasts or storage data surprise the market, prices can move a long way in a short time. Large NG moves are common, so size positions with care.