Natural Gas Contract Specs

Natural Gas Contract Specs: A Comprehensive Guide for Traders and Investors

Natural gas has become one of the most popular commodities for trading due to its volatility, seasonality, and the increasing demand for cleaner energy sources. For traders and investors looking to enter the natural gas market, it is essential to understand the contract specifications of natural gas futures and options.

In this article, we will provide a comprehensive guide on natural gas contract specs, including contract size, tick size, margin requirements, and delivery months.

Contract Size and Tick Size

The contract size for natural gas futures is 10,000 million British thermal units (mmBtu) per contract. The tick size, which refers to the minimum price movement allowed for the futures contract, is $0.001 per mmBtu, or $10 per contract. This means that a one-cent move in the natural gas futures price equals a $100 profit or loss per contract.

Margin Requirements

Margin requirements refer to the amount of funds required to open a futures position. The margin for natural gas futures is set by the exchange and varies depending on market conditions. As of January 2021, the initial margin for natural gas futures is $4,050 per contract, and the maintenance margin is $3,000 per contract.

Delivery Months

Natural gas futures contracts are available for trading for the current month and the next 23 months. For example, in January 2021, a trader can trade the February 2021 contract, as well as contracts for March 2021 through December 2022. The delivery month for natural gas futures is the month in which the contract expires, and delivery of the underlying commodity occurs.

Options Contract Specs

In addition to futures contracts, natural gas options are also available for trading. Options provide traders and investors with the flexibility to hedge their positions or speculate on price movements without the obligation to buy or sell the underlying commodity.

Natural gas options have a contract size of 10,000 mmBtu per contract and a tick size of $0.001 per mmBtu, or $10 per contract. The strike price intervals for natural gas options are $0.005 per mmBtu, or $50 per contract. Options have three expiration months available for trading: the nearest two months, plus the next 22 months.


As a trader or investor looking to enter the natural gas market, understanding the contract specifications is crucial. Knowing the contract size, tick size, margin requirements, and delivery months for natural gas futures and options can help you make informed decisions and manage your risk effectively. Always remember to conduct thorough research and analysis of the market before entering any trades to maximize your chances of success.

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