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Just wondering if the "NG" NYMEX/Globex market is nice and liquid and what I can expect from it, also would it be a good market for a beginner? thanks..
Can you help answer these questions from other members on NexusFi?
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
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It's not as liquid as Crude/CL but it's pretty liquid. You can expect 50 lots up 1 tick wide in prompt.
Implied engine works for the first 24 months, so there's reasonable liquidity out 24 months. In the backs best market is often inside the shown market.
It's a seasonal market and very Weather dependent. Be careful of the Mar-Apr spread which is the Winter-Summer spread that drives the shape of the entire curve.
I trade NG intraday on ticks. My second important commodity beside CL. Large moves, up to 3-4%/day can happen several times per month. You need good understanding of NG price structure. It is a beast (like CL). Moves are more anarchistic than CL imho, but if you catch 75% of a NG price move, it can make your month.
It is an intraday traders' heaven but it must fit your risk sensitivity and your account. Thursdays are important because of US storage numbers. Also correlation sometimes to CL inventories (wednesdays). Can move negatively or positively correlated to CL. (more negatively)
Without knowing your trading strategy, it is difficult to say more here.
I dont do spreads or seasonal trades, just plain futures with up to 3 days holding period.
I understand what a 50 lot is and what an uptick/downtick is, could you clarify?
My strategy is to scalp i.e. get in and get out making a couple ticks in a short period of time, what are the beginners markets anyway? things like corn, soybeans and other softs?
Probably there are no beginner markets. Just adjust down your capital at risk sufficiently. NG might be a good scalpers market, don't know. maybe. Ask them scalpers. Enjoy your Sunday.
