Some of the widespread contracts accessible to commerce Pure Fuel is CME Group’s NYMEX Henry Hub Pure Fuel (NG) Futures. Pure Fuel is the world’s third largest bodily commodities futures contract & NG futures function a world benchmark for this market.
Henry Hub is an important hub for pure fuel in North America. As a nexus for a number of pure fuel interconnections, the supply level for Henry Hub Pure Fuel Futures is situated in Louisiana. That includes an intensive infrastructure together with interstate and intrastate pipelines, Henry Hub affords pure fuel shippers and entrepreneurs ready-to-access pipelines serving markets throughout your entire United States.
When native markets throughout the US worth their pure fuel, they have a tendency to take action based mostly on a differential to Henry Hub. This differential accounts for regional market situations, transportation prices and accessible transmission capability between areas.
There are lots of advantages to buying and selling Pure Fuel Futures. Watch this 2-minute video to be taught extra –
Advantages of Buying and selling Pure Fuel Futures
- Deep Liquid Markets – Merchants can get out and in of positions with the third largest bodily commodities futures contract on this planet by quantity. 400K contracts are traded each day, with 1.4M of open curiosity.
- Capital Effectivity – Merchants can management a big contract worth with a small quantity of capital. If used correctly, it is a highly effective strategy to improve capital effectivity.
- Bodily Settlement – NYMEX NG futures are carefully related to the spot market, decreasing slippage.
- Buying and selling at Settlement – Pure Fuel TAS spreads (NGT) can be found on NYMEX in any unfold mixture for the primary 12 consecutive month-to-month contracts.
- World Benchmark – Pure Fuel is the world’s third largest bodily commodities futures contract, with use rising in South America, Asia and Europe.
- Almost 24-Hour Buying and selling – Pure Fuel commerce 23 hours a day, 6 days every week. This supplies extra futures buying and selling alternatives all through the day.
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