Natural trading vocabulary options gas


Options allow traders to leverage their bets on the underlying assets represented by the option. These handy financial instruments can be used to trade stocks, bonds, currencies, and even futures and commodities. In this article, we will focus on the basics of trading natural gas options.OverviewUnlike options to sell or purchase stocks, where the option can be executed in exchange for the underlying asset directly, natural gas options are exercised into futures contracts that represent natural gas contracted for delivery.

This is not something a trader should lose sleep over, as a futures contract is as much of a security as a stock certificate.In practice, natural gas optioNatural Gas futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of natural gas (eg. 10000 mmbtus) at a predetermined price on a future delivery date. Natural Gas Futures ExchangesYou can trade Natural Gas futures at New York Mercantile Exchange (NYMEX).NYMEX Natural Gas futures prices are quoted in dollars and cents per mmBtu and are traded in lot sizes of 10000 natural gas options trading vocabulary.

Natural Gas producers can employ a short hedge to lock in a selling price for the natural gas they produJoin other Individual Investors receiving FREE personalized market updates and research.Join other Institutional Investors receiving FREE personalized market updates and research.Join other Financial Advisors receiving FREE personalized market updates and research. The CommodityHQ.com Newsletter is free and emailed to you on a regular basis.

Natural Gas options are option contracts in which the underlying asset is a natural gas futures contract.The holder of a natural gas option possesses the right (but not the obligation) to assume a long position (in the case of a call option) or a short position (in the case of a put option) in the underlying natural gas futures at the strike price.This right will cease to exist when the option expire after market close on expiration date.

Natural Gas Option ExchangesNatural Gas option contracts are available for trading at New York Mercantile Exchange (NYMEX).NYMEX Natural Gas option prices are quoted in dollars and cents per mmBtu and their underlying futures are traded in lots of 10000 mmBtus of natural gas. The Platts industry glossary covers commonterms and abbreviations from the calls puts and options explained, power, petrochemicals, nuclear, natural gas options trading vocabulary, coal andmetals markets and industries.

The 15-Day Brent crude oil market is so-called because a seller mustgive a buyer a minimum 15 days notice of the intended loading dates fora cargo of Brent Blend North Sea crude oil inany particular month traded. 15-Day Brent is.




Natural gas options trading vocabulary

Natural trading vocabulary options gas