Natural Gas Futures Contract Specifications (NG)
NYMEX natural gas is a 10,000 MMBtu contract. One tick is one tenth of a cent per MMBtu, worth $10 per contract. It is the most seasonal and arguably the most volatile liquid commodity future.
Specifications
| Contract unit | 10,000 mmBtu |
| Exchange | NYMEX/CME |
| Symbol | NG |
| Tick size | 0.001 |
| Tick value | $10 |
| Point value | $10,000.00 |
| Delivery months | All |
Margin here is unusually variable — CME raises it sharply ahead of winter and around weather events. Check your broker's live figure. See the margin calculator.
The contract family
| Contract | Symbol | Size | Tick value |
|---|---|---|---|
| Natural Gas | NG | 10,000 MMBtu | $10.00 |
| E-mini Natural Gas | QG | 2,500 MMBtu | $12.50 |
| Micro Henry Hub | MNG | 1,000 MMBtu | $1.00 |
Reading the price
NG quotes in dollars per MMBtu (million British thermal units) to three decimals. A move from $2.500 to $2.600 is one tenth of a dollar — 0.1 points — worth $1,000 per contract. One tick is $0.001, worth $10.
Because the quoted price is small in absolute terms, percentage moves are large. Gas at $2.50 moving 10 cents is a 4% move — routine. The same 4% in crude at $70 is $2.80 a barrel.
Why gas behaves differently from oil
- Storage is the balance sheet — the EIA weekly storage report every Thursday moves price more than any other single event
- Weather is the demand driver — heating degree days in winter and cooling degree days in summer drive almost all seasonal demand
- It is expensive to move — pipeline capacity rather than ships constrains supply, so regional prices can diverge sharply
- Production is slow to respond — associated gas from oil wells comes regardless of the gas price
- Expiry is punishing — the front month can gap violently into expiry because physical players settle it
Expiry — the single biggest risk
NG trades every month, and the front month expires three business days before the first day of the delivery month. Liquidity collapses in the final days and price can move several percent in minutes as physical players settle positions.
Retail traders should be out of the front month before its final week. A gap into expiry is not a stop you can place your way out of.
More energies contracts
- ICE Brent Crude (B) — 1,000 bbl, $10 per tick
- Crude Oil (CL) — 1,000 barrels, $10 per tick
- ICE WTI Crude (T) — 42,000 gal, $10 per tick
- E-mini Natural Gas (QG) — 2,500 mmBtu, $12.50 per tick
- E-mini Crude Light (QM) — 500 barrels, $12.50 per tick
- ICE Gas Oil (G) — 100 tonnes, $4.20 per tick
Full list: all 135 contract specifications.
Frequently asked
How much is one tick in natural gas?
$10 per NG contract ($0.001 × 10,000 MMBtu). On MNG it is $1.
What is the smallest move?
One tenth of a cent per MMBtu — $10 on NG, $1 on MNG.
Why is natural gas margin so high relative to its price?
Because the exchange prices margin against volatility, not against notional value. Gas can move 10% in a day, so the margin is sized for that.