August 3, 2023

Natural Gas Mini

Natural Gas Mini

The Natural Gas Mini is a smaller version of the standard Natural Gas futures contract traded in MCX, with a reduced lot size of 250 mmBtu, compared to the standard contract’s 1,250 mmBtu. This allows participants to engage with lower investment requirements, making it more accessible to a wider range of investors.

Contents:

Natural Gas Mini – Meaning

The “Mini” in the name of Natural Gas Mini signifies a smaller lot size, 250 units or 250 mmBtu. This is much smaller than the lot size of a standard Natural Gas futures contract, which is 1,250 units or 1,250 mmBtu. 

The smaller contract size of the Natural Gas Mini makes it a much more affordable and accessible option for retail investors and smaller institutions to participate in the natural gas market.

What is the difference between Natural Gas and Natural Gas Mini?

The primary difference between natural gas and natural gas mini is the contract size. While Natural Gas has a larger contract size of 1,250 units or 12,500 mmBtu, the Natural Gas Mini has a smaller size of 250 units or 2,500 mmBtu.

ParametersNatural GasNatural Gas Mini
Contract Size1,250 units or 12,500 mmBtu250 units or 2,500 mmBtu
Tick Size₹0.10₹0.10
Trading Unit12,500 mmBtu2,500 mmBtu
Delivery Unit12,500 mmBtu2,500 mmBtu
Initial MarginHigher (due to larger contract size)Lower (due to smaller contract size)
AccessibilitySuitable for institutional investorsMore affordable and accessible for retail investors

Contract Specifications – Natural Gas Mini

Natural Gas Mini, symbolized as NATGASMINI, is a commodity contract available on the MCX with a lot size of 250 units or 2,500 mmBtu. The trading sessions run from Monday to Friday, 9:00 AM to 11:30/11:55 PM. The contract’s base and delivery units match the lot size, with a minimal tick size of ₹0.10.

SpecificationDetails
CommodityNatural Gas Mini
SymbolNATGASMINI
Contract Start Day1st day of the contract launch month
Expiry DateLast business day of the month
Trading SessionMonday to Friday: 9:00 AM – 11:30 PM/11:55 PM
Lot Size250 units (2,500 mmBtu)
PurityAs per MCX standard
Price QuotePer mmBtu
Maximum Order SizeAs per MCX regulations
Tick Size₹0.10
Base Value250 units (2,500 mmBtu)
Delivery Unit250 units (2,500 mmBtu)
Delivery CentreAs notified by MCX
Trading Unit (additional)250 units (2,500 mmBtu)
Delivery Unit (additional)250 units (2,500 mmBtu)
Quotation/Base ValuePer mmBtu
Initial MarginBased on the volatility of the market

How to Invest in Natural Gas Mini?

Investing in Natural Gas Mini involves a few steps:

  1. Open a trading account with Alice Blue – a Leading Member of the MCX.
  2. Complete the KYC process by providing documents such as ID proof, address proof, and bank details.
  3. Deposit the required margin into your trading account.
  4. Use the trading platform the broker provides to buy or sell Natural Gas Mini contracts. Make sure to monitor market conditions regularly.
  5. Keep an eye on the expiry date of the contract. You can square off your position before the contract expires or let the contract settle as per the rules of the MCX.

We hope that you are clear about the topic. But there is more to learn and explore when it comes to the stock market, commodity and hence we bring you the important topics and areas that you should know:

Gold Mini
Gold Guinea
Silver Micro
Gold Petal
Zinc Mini
Aluminium Mini
Crude Oil Mini
Silver Mini
How to Become a Sub Broker?

Natural Gas Mini – Quick Summary

  • Natural Gas Mini is a smaller version of the standard Natural Gas futures contract traded on the MCX, making it more accessible to retail investors.
  • The Natural Gas Mini contract involves an agreement to buy or sell a specific quantity of natural gas at a predetermined price on a specified future date.
  • The Natural Gas Mini futures contract has a contract size of 250 units or 2,500 mmBtu.
  • Historical data, such as past prices, are critical in making informed trading decisions.
  • Natural Gas Mini differs from standard Natural Gas mainly in contract size and suitability for different investors.
  • Natural Gas Mini contracts have specific trading hours, tick size, and margin requirements.
  • To invest in Natural Gas Mini, one needs to open a trading account, complete the KYC process, deposit margin, and then can trade on the MCX.
  • Invest in Natual Gas with Alice Blue. With their 15 Rs brokerage plan, you can save more than ₹ 1100 in brokerage every month. They also don’t levy clearing charges. 

Natural Gas Mini – FAQs

1. What is a Natural Gas Mini?

Natural Gas Mini is a futures contract traded on the Multi Commodity Exchange of India (MCX). It represents a smaller quantity (250 units or 2,500 mmBtu) of natural gas, making it more affordable and accessible for retail investors.

2. What is the Natural Gas Mini Lot Size?

SpecificationDetails
Lot SizeThe lot size for a Natural Gas Mini contract on the MCX is 250 units, equivalent to 2,500 mmBtu of natural gas.

3. What is the Natural Gas Mini Symbol?

The trading symbol for Natural Gas Mini on the MCX is NATGASMINI. It’s crucial to know this symbol for placing trades accurately on the exchange.

CommodityTrading SymbolExchange
Natural Gas MiniNATGASMINIMCX

4. How Can I Trade In Natural Gas Mini In India?

To trade in Natural Gas Mini in India, you need to open a trading account with a broker who is a member of the MCX, complete the KYC process, deposit the required margin, and use the broker’s trading platform to buy or sell contracts.

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