How to Start Trading Natural Gas with PrimeXBT

Every individual probably knows what natural gas is, and some of its uses. This is an essential commodity in the energy sector. It has a high demand in most States and contributed close to 25 percent of the energy usage in the United States per recent studies. Natural gas ranks high among the most traded commodities in online markets. Factors such as economic situations, inflation, price variations have propagated the trading of natural gas.

Trading natural gas involves the speculation of the future price movements of natural gas. Therefore, one buys natural gas when they speculate that its prices would increase, and short-sells when speculating a fall in the prices of natural gas. One can trade natural gas on PrimeXBT under the NAT.GAS ticker. Natural gas traders on PrimeXBT have an array of benefits derived from the low trading charges, fast order execution, advanced trading tools and options, all that help in developing a victorious strategy for natural gas trading. Read through to learn more on how to trade natural gas.

How to Start Trading Natural Gas on PrimeXBT

The following are the steps to follow in order to enjoy the perks related to natural gas trading on PrimeXBT;

The first step is to create an account on PrimeXBT if you do not have one already. All you need is a registered email address and a few minutes to create the account. Secondly, activate your account by making the first deposit. PrimeXBT requires no deposit charges; it is completely free. You can also begin by creating a demo account suppose you want to learn before you start trading natural gas. Thereafter, take some time to study the market trends. This would help you make speculations before you start trading.

Now begin to trade; buy and sell when it is profitable. Take advantage of the Natural Gas leverage trading available on PrimeXBT. Leverage trading enables you to keep more capital in the account. You can use this capital to manage the market risks, and open new positions. Further, leverage trading is known for greater profits; it is said to be one of the most effective ways to obtain better returns. With margin trading you stand to benefit from the falling and growing markets since you can open both short and long positions.

Remember to always monitor your account and make the necessary adjustments should there be a need.

What Are The Ways of Trading Natural Gas on PrimeXBT?

One may trade Natural Gas by using Contracts for Differences, Options Contracts, Future Contracts, etc. This section briefly discusses these ways;

Options Contracts

With the use of options contracts, the buyer in a natural gas trade obtains the right to receive the delivery of a specific quantity of natural gas in the future for a specific price determined prior. This right however does not come with an obligation on the buyer. There are two primary types of options; a call option that one can buy if they speculate that the price of natural gas would increase, and the put option used when speculating a fall in the price of natural gas.

The difference between the current market price of natural gas upon the expiration date and the strike price of the option represents the profit made during the trade.

Future Contracts

A future contract for natural gas refers to the contractual agreement between the buyer and the seller for an exchange of a certain quantity of natural gas in the future for a specific price determined prior. Unlike the options contracts, the future contracts bind the buyer by imposing certain obligations such as receiving delivery. Most companies use future contracts to hedge their exposure in the markets. Similarly, traders with large firms use future contracts for speculation.

Contracts for Differences

These are the most used ways by the retailers. They allow the trader to use a leveraged option that enables them to increase their exposure in the market. Further, the trader only uses a small part of their account as a margin for trading thus keeping a larger portion of the capital in their accounts.

Unlike future contracts or options contracts, contracts for differences do not allow the buyer to take physical delivery of the natural gas. However, the buyer has the option of long and short selling thus they can earn profits even when the prices of natural gas are falling.

Final Thoughts

Natural gas is an important form of energy source and has been used for many decades. As a result, there are several different methods of trading natural gas. However, it is best to choose the method that suits your needs and investment goals. And it is through platforms like PrimeXBT where you can best learn how to trade natural gas today!

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