looks like a good time to get into natural gas....
http://www.tradingmarkets.com/.site/eminis/commentary/guestcommentary/-77517.cfm
The world's eyes are watching oil prices. Oil is hitting record after record on its march higher. The world's economies are closely tied to oil's fate as evidenced by tumbling stock markets when oil advances. Oil is the lead commodity in what is known to future traders as the "energy complex". Natural gas is a component of the energy complex and follows oil very closely. It's often overlooked by traders; however, with the advent of NYMEX miNY natural gas futures, natural gas has become an easily accessible market for traders. This article will provide a brief overview of the natural gas futures market and explain why I believe there is potentially an opportunity right now in this market.
Natural gas is created primarily from methane which is created from the decomposition of non-fossil organic material and in oil fields. It takes heavy processing to turn it into the usable form of natural gas. Its uses included creating Hydrogen, as a power source, and as a fuel product for heating/cooking in consumer's homes, among other uses. 25% of all energy used in the United States is attributed to natural gas. The futures contract is based on physical delivery to what's called "The Henry Hub" in Louisiana. This is where 16 major pipelines come together. These pipelines are supplied by sources all over the Midwest and Eastern United States.
The MiNY futures contract represents 2500 million British Thermal Units or BTU's as opposed to the full size contacts that trade in 10,000 million BTU's. It trades in all listed months over the next 5 years and the minimum price change or tick is $12.50/contract. The maximum size imposed by the exchange is 999 contracts and MiNY's contracts symbol is QC. It takes $2784.00 in margin to trade one contract, although several brokers have lower .......
http://www.tradingmarkets.com/.site/eminis/commentary/guestcommentary/-77517.cfm
The world's eyes are watching oil prices. Oil is hitting record after record on its march higher. The world's economies are closely tied to oil's fate as evidenced by tumbling stock markets when oil advances. Oil is the lead commodity in what is known to future traders as the "energy complex". Natural gas is a component of the energy complex and follows oil very closely. It's often overlooked by traders; however, with the advent of NYMEX miNY natural gas futures, natural gas has become an easily accessible market for traders. This article will provide a brief overview of the natural gas futures market and explain why I believe there is potentially an opportunity right now in this market.
Natural gas is created primarily from methane which is created from the decomposition of non-fossil organic material and in oil fields. It takes heavy processing to turn it into the usable form of natural gas. Its uses included creating Hydrogen, as a power source, and as a fuel product for heating/cooking in consumer's homes, among other uses. 25% of all energy used in the United States is attributed to natural gas. The futures contract is based on physical delivery to what's called "The Henry Hub" in Louisiana. This is where 16 major pipelines come together. These pipelines are supplied by sources all over the Midwest and Eastern United States.
The MiNY futures contract represents 2500 million British Thermal Units or BTU's as opposed to the full size contacts that trade in 10,000 million BTU's. It trades in all listed months over the next 5 years and the minimum price change or tick is $12.50/contract. The maximum size imposed by the exchange is 999 contracts and MiNY's contracts symbol is QC. It takes $2784.00 in margin to trade one contract, although several brokers have lower .......
