Natural Gas Exchange Traded Funds
Natural gas prices have fluctuated from a low of $2.50 to over $6 this year. They are now trading around $5. When there are large ranges like that, a sharp trader may be able to profit from this.
Whether you are a trader or investor, you will be able to find the right investment for you in natural gas. This article will show you different ways to trade natural gas. You will find Natural Gas ETFs that invest in stocs of producers,drillers and even futures.
Why invest in the natural gas sector? Natural gas is gaining in in usage in the United States. The reason for this is that natural gas burns cleaner than coal. Since coal produces most of our electricity, there is pressure to convert coal generating plants to run on natural gas. Plus since gas burns cleaner, it is more environmentally friendly.
Supplies of natural gas are increasing. This is another reason to trade nat gas. With better ways of drilling for natural gas, plus new gas fields that have been discovered, you should see an increase in natural gas usage. Plus you also have Americans wanting us to use our own energy resources here at home as opposed to importing our energy needs.
Recently Billionaire T.Boone Pickens has been promoting the use of natural gas for producing electricity and using it as an alternative fuel for vehicles. And just this week Exxon has purchased XTO Energy, one of the largest natural gas companies around. If the big boys are looking at natural gas, shouldn't you?
How to Trade Natural Gas ETFs
An ETF is better known as an Exchange Traded Fund. ETF are similar to mutual funds. An exchange traded fund is typically made up of several stocks. One such fund is the First Trust ISE-Revere Natural Gas Index Fund. This fund, ticker symbol FCG is generally made up of companies thats earn a large part of their revenue from natural gas productions and exploration.
Currently the United States Natural Gas Fund is the largest natural gas etf. This fund trades the natural gas futures contract on the New York Mercantile Exchange. This fund purchases the front month futures contract. it hold them until 2 weeks before the contract expires.
I hope this has interested you in trading the Natural Gas ETF. Please look further into this exciting market. - 23159
Whether you are a trader or investor, you will be able to find the right investment for you in natural gas. This article will show you different ways to trade natural gas. You will find Natural Gas ETFs that invest in stocs of producers,drillers and even futures.
Why invest in the natural gas sector? Natural gas is gaining in in usage in the United States. The reason for this is that natural gas burns cleaner than coal. Since coal produces most of our electricity, there is pressure to convert coal generating plants to run on natural gas. Plus since gas burns cleaner, it is more environmentally friendly.
Supplies of natural gas are increasing. This is another reason to trade nat gas. With better ways of drilling for natural gas, plus new gas fields that have been discovered, you should see an increase in natural gas usage. Plus you also have Americans wanting us to use our own energy resources here at home as opposed to importing our energy needs.
Recently Billionaire T.Boone Pickens has been promoting the use of natural gas for producing electricity and using it as an alternative fuel for vehicles. And just this week Exxon has purchased XTO Energy, one of the largest natural gas companies around. If the big boys are looking at natural gas, shouldn't you?
How to Trade Natural Gas ETFs
An ETF is better known as an Exchange Traded Fund. ETF are similar to mutual funds. An exchange traded fund is typically made up of several stocks. One such fund is the First Trust ISE-Revere Natural Gas Index Fund. This fund, ticker symbol FCG is generally made up of companies thats earn a large part of their revenue from natural gas productions and exploration.
Currently the United States Natural Gas Fund is the largest natural gas etf. This fund trades the natural gas futures contract on the New York Mercantile Exchange. This fund purchases the front month futures contract. it hold them until 2 weeks before the contract expires.
I hope this has interested you in trading the Natural Gas ETF. Please look further into this exciting market. - 23159
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There are many more ways to trade gas etf .You can read more about natural gas mutual funds
posted by X - Men @ 9:37 AM
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