At XMTrading, you can trade all natural gas (energy) and crude oil brands, and we will thoroughly explain the conditions and characteristics. Most users will typically trade in foreign exchange rates, but some users will also trade natural gas. However, natural gas tends to be more volatile.
What is natural gas?
Natural gas, along with crude oil, 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 has the advantage of producing fewer nitrogen oxides than other forms of energy, so it is said to be an extremely environmentally friendly resource. While the use of natural gas is progressing, Russia is currently engaged in an ongoing war, so it is necessary to be up to date on the news regarding the world situation. In recent years, political influence has become particularly high.
natural gas leverage
When checking the leverage information for natural gas, the maximum is 33.3 times. For exchange rate CFDs, the maximum leverage is 1000 times, but the main reason for the limited leverage is the volatility of commodity prices. Natural gas is much more liquid than gold, so it is considered a popular speculative stock by traders. For this reason, it is not a stock that is recommended for beginners. Oil and gas products such as GSOIL, Brent, WTI, and NGAs are more liquid than commodities such as stock indexes, but they are also more dangerous. Management on an hourly basis is also important.
natural gas spread
The detailed spread size for natural gas at overseas FX broker XM is 3.0 pips to 4.0 pips. Of course, natural gas is greatly influenced by economic indicators and political situations, and it may suddenly move up and down vigorously, so it is wise not to put in too many lots. There is a good chance of a big loss, so we recommend trading carefully. Looking at the MT5 tool, when it comes to the London market, it starts to get rough along with stocks, so the risk is also large. In this category, it is attractive to completely reduce the lot and aim for a long. This is because you can avoid forced stop loss.
natural gas trading hours
According to management information, all spot trading hours are from 7:05 Japan time to 5:55 the next morning. Please note that in winter, this setting will be set one hour later. Natural gas handled by XM is the same as currency pairs, Brent crude oil, and GOIL, and contract trading is basically possible 24 hours a day on weekdays. Deposit and withdrawal times remain unchanged. Please note that you will not be able to make payments or place orders during closed hours. XM allows you to create additional accounts and trade with multiple account types such as standard and micro accounts.
natural gas swap point
On the official website, natural gas swap points are not applicable in the market during both winter and summer time. If there is no negative swap when carrying over a position, there will be no additional fees, so there is no need to consider carryover costs. By the way, XM allows scalping on target accounts, and can be done at the same time on different market rates. New trades can be made on the chart normally from Monday to Friday.
Natural gas precautions
When trading natural gas, please be aware of the following points. In order to avoid losses, be careful of the quirks of financial product trading. Natural gas fluctuates as much as crude oil prices, so strategies and handling require ingenuity. Essentially, important economic indicators affect the relationship between supply and demand of crude oil and energy. Crude oil trading has large spreads, and margin is important in FX, so display it on the MT4 chart to understand the direction. Be wary of swaps.
high volatility
The problem with natural gas, from experience, is that it is extremely fluid. Natural gas moves well, so if you don’t make lots in small quantities, your funds will easily be lost in no time. Therefore, if you are familiar with the exchange market, try to keep the lot size small, even if you are short. Natural gas is riskier because it has some higher volatility than types such as Bitcoin or gold.
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.
Trends are likely to occur
Trends are likely to occur in crude oil, natural gas, and FX trading, so be wary of price fluctuations and margins. It is best to cut your losses at about 2% unrealized loss per investment. Prices fluctuate a lot during London and New York hours. Be careful as many people put in 10 or 20 times the lot size. Unlike American US dollar pairs (such as the dollar/yen), resources such as diesel have very different effective units and price movements. They may fly out at the end. You need to be in front of the screen until the market closes.
XM is recommended
At XM, you can trade not only precious metals, virtual currencies, and stocks, but also foreign exchange. KIWAMI, an account type with even narrower spreads, has also been introduced. Therefore, it can be said that it is a highly recommended FX company for trading. It also supports zero cuts and has obtained licenses from different Financial Services Agency, so you can rest assured.
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