long nat gas

Discussion in 'Commodity Futures' started by dartheory, Feb 7, 2013.

  1. 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.
     
    #21     Feb 15, 2013
  2. Maverick74

    Maverick74

    UNL. It's an ETF that tracks the 12 month curve of nat gas.
     
    #22     Feb 15, 2013
  3. 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
     
    #23     Mar 31, 2013
  4. 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
     
    #24     Mar 31, 2013
  5. Visaria

    Visaria

    Was out of that NG position at 3160 btw :D

    What does spreads strips locational basis mean?
     
    #25     Mar 31, 2013
  6. Spread such as march/April

    Strip like a curve April thrum october

    Locational such as Texas vs. New England
     
    #26     Mar 31, 2013
  7. Visaria

    Visaria

    Could you go through an example?
     
    #27     Apr 1, 2013
  8. 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
     
    #28     Apr 1, 2013
  9. Visaria

    Visaria

    Interesting, thks, will look into it.
     
    #29     Apr 1, 2013