long nat gas

[FrankSlaughtery]

Quote from cdcaveman:

are their ways to play NG with a smaller nominal investment then in the futures..

can you play beneficiaries of NG's higher future price..

there's the mini ng contract which is only 1/4 the size of the big one.

http://www.cmegroup.com/trading/energy/natural-gas/emini-natural-gas_contract_specifications.html

if you don't want to trade futures for the love of God don't trade ung b/c of the contango issue.

beneficiaries could be chemical cos b/c they use a lot of it but the correlation isn't exactly 1-1.

 

[Maverick74]

Quote from cdcaveman:

are their ways to play NG with a smaller nominal investment then in the futures..

can you play beneficiaries of NG's higher future price..

UNL. It's an ETF that tracks the 12 month curve of nat gas.

 

[Wallace]

Handle123's obviously got it right

I did two demo cfd Sell trades, one crude the other ng and got creamed by both, in
my defence I didn't analyze them first, just eyeballing the price formations because
I'd just started a B&H exercise in several instruments, I usually daytrade euro only

anyway, weather's got nothing to do with long term speculation and ng's been a
Major Buy since this time last year. the test will first be the $5 level and then the $6
level which if the price breaks it, could see the price go a Long way - UP

 

[optionbull]

Quote from Visaria:

I regularly trade NG. Anyone else know about the flash crash at the beginning of the year? I was short but didnt exit since it was overnight. Still exited well though.

Currently short NG at 3260, looking for new lows around 3000.

Haven't heard anything further about the flash maybe look around Cftc
web site

The big money in nat gas is the spreads strips locational basis

 

[Visaria]

Was out of that NG position at 3160 btw

What does spreads strips locational basis mean?

 

[optionbull]

Quote from Visaria:

Was out of that NG position at 3160 btw

What does spreads strips locational basis mean?

Spread such as march/April

Strip like a curve April thrum october

Locational such as Texas vs. New England

 

[Visaria]

Could you go through an example?

 

[optionbull]

Quote from Visaria:

Could you go through an example?

elite trader handle named "bone" does a servie for people looking at relative value in energy check it out...

i mean that the "price" is played in a mojor way in the following:

buy march sell april contract 1:1

strip ( shape or convexity) of the cantango/backwardation in anticipation of the curve moving in such a way front three months go up but slower that back three months in a 6 month "strip" of contracts I.E. April- Oct"


Basis: differnce in cost widening in relation to one another sell texas buy new york, somthing like that, could even be texas vs. california, there are many points, I think the CME lists a lot if not all of the supposed liquid ones

 

[Visaria]

Interesting, thks, will look into it.