Raw materials: Natural gas investing with binary options

Natural gas is the third most-widely used energy source in the world. It is an interesting raw material in terms of binary options trading. Here are some tips and advice so that you can trade in natural gas in the best possible climate.

It is important to understand the quirks of the natural gas market before trading in this raw material. In Europe, the gas is supplied via long-term contracts lasting anywhere from 5 to 25 years. It is an agreement between the national producers and the national suppliers.

Since the liberalization of the natural gas market, it is now possible to trade gas on the international markets like the NYMEX or New York Mercantile Exchange. There has been a strong increase in the volumes of gas exchanged in certain European markets like the TTF and the Zeebrugge.

Natural gas trend lines, within the scope of long-term contracts, evolve in correlation with the price of the underlying primary petroleum products.

There was a notable decrease between 2005-2007, but the trend reversed between January 2008 and July 2008 and saw an almost 40% increase. This explains the spike in petroleum’s cours/line chart and the decrease of the value of the dollar in the same period.

What makes natural gas an interesting investment choice is that demand is subject to seasonal fluctuations. It has a strong demand in winter when it is required for heating, so it is easy to speculate on future increases of cours to capitalize on some quick profits.

You can trade in natural gas by selecting one of our brokers.


Leave a Reply