In commodity market terminology, Natural Gas refers to a gaseous mixture of hydrocarbons that occurs naturally in porous rock below the earthís surface. The mixture of gases consists primarily of methane and ethane, with propane and butane occurring at lower levels. Natural Gas is widely used for cooking and heating homes, in addition to other uses.
Natural Gas futures are traded on the New York Mercantile Exchange and on the CME Groupís Globex and ClearPort electronic trading platforms. The contract size is 10,000 million British Thermal Units, prices are quoted in U.S. Dollars, and the minimum price increment is $0.001 per mmBtu or $10.00 per contract.