[XM Trading: For Beginners] Natural Gas Features, Spreads and Leverage NGAS

Language Switcher

It is possible to trade natural gas on XM. Most users will typically trade the exchange rate, but some users will trade natural gas. However, natural gas tends to be more volatile.

What is natural gas?

Natural gas is the resource with the highest production volume in Russia, which is currently a problem child in the world. The main component of natural gas is methane, which is said to be an extremely environmentally friendly resource because it produces less nitrogen oxides than other forms of energy. While the use of natural gas is progressing, Russia is currently fighting a war, so it is necessary to know the news about the world situation as soon as possible. In recent years, the political influence has been extremely high.

natural gas leverage

Natural gas leverage is capped at 33.3x. In the case of the exchange market, the maximum leverage is 1000 times, but the biggest reason why leverage is suppressed is volatility. Natural gas is considered a speculative stock by traders because it is significantly more liquid than gold. Therefore, it can be said that it is not recommended for beginners.

natural gas spread

XM’s natural gas spreads range from 3.0 pips to 4.0 pips. Of course, natural gas has a great impact on economic indicators and political situations, and it may fluctuate suddenly and violently, so it is wise not to enter lots. There is a good chance of losing big, so we recommend you to trade carefully.

natural gas trading hours

Trading hours are from 7:05 Japan time to 5:55 the next morning. In winter, this will be set one hour later, so be careful. Natural gas handled by XM can basically be traded 24 hours a day on weekdays. Please note that payments and orders cannot be made during closed hours.

natural gas swap point

There are no natural gas swap points. If there is no negative swap due to carryover of the position, no additional fee will be charged, so you do not need to consider the carryover cost.

Natural gas precautions

When trading natural gas, please be aware of the following points.

high volatility

The problem with natural gas is that it is extremely fluid. Natural gas works well, so if you don’t keep the lot small, the funds will disappear in no time. Therefore, if you are familiar with the exchange rate, especially the lot should be small. Natural gas is more volatile than gold, which is dangerous.

has a contract month

Since natural gas is a futures contract, it has a contract month. Long-term holding is not possible because it is automatically settled when the contract month is reached. There is no swap point for natural gas, but if you have too much, it will be automatically settled, so please be careful. Natural gas has a maturity date of only one month.

XM is recommended

XM allows you to trade not only precious metals, cryptocurrencies and stocks, but also forex. In addition, KIWAMI, an account type with narrow spreads, has also appeared. Therefore, it can be said that it is a highly recommended Forex company for trading.