Futures education
NG vs MNG natural gas futures: units, ticks and settlement
MNG is one-tenth the size of NG and settles in cash; NG has physical-delivery terms. The smaller contract also stops trading earlier, so their expiration dates are not interchangeable.
The quote is dollars per MMBtu
NG represents 10,000 MMBtu of Henry Hub natural gas; Micro Henry Hub, symbol MNG, represents 1,000 MMBtu. MMBtu means one million British thermal units, a measure of energy. It is not a barrel count.
Both contracts quote U.S. dollars per MMBtu. A hypothetical price of 3.200 means $3.20 per MMBtu, not $3.20 for the whole contract. Multiply a price change by the contract quantity to calculate its dollar effect.
Sources: NYMEX Chapter 220: Henry Hub Natural Gas futures · NYMEX Chapter 440: Micro Henry Hub Natural Gas futures
A one-cent move is ten outright ticks
For outright NG and MNG futures, the minimum price step is $0.001 per MMBtu. Multiplying that step by 10,000 or 1,000 gives a tick value of $10 for NG or $1 for MNG. A $0.010 change is ten ticks, even though it is only one cent per MMBtu.
Do not substitute E-mini natural gas, QG, for MNG. QG is 2,500 MMBtu with a $0.005 price increment and a $12.50 tick. Its quantity and price grid both differ from the micro.
| Contract | Energy quantity | Outright price step | Dollar tick value |
|---|---|---|---|
| NG: Henry Hub | 10,000 MMBtu | $0.001 per MMBtu | $10 |
| MNG: Micro Henry Hub | 1,000 MMBtu | $0.001 per MMBtu | $1 |
| QG: E-mini Henry Hub | 2,500 MMBtu | $0.005 per MMBtu | $12.50 |
Sources: CME Group: Henry Hub futures contract comparison · NYMEX Chapter 220: Henry Hub Natural Gas futures · NYMEX Chapter 440: Micro Henry Hub Natural Gas futures
From 3.200 to 3.150: a 50-tick loss for a long
Suppose a hypothetical long position is bought at 3.200 and sold at 3.150. The price change is -$0.050 per MMBtu: five cents, or 50 ticks. Gross P/L equals price change × MMBtu per contract × contracts.
One NG loses $500; one MNG loses $50. Three MNG lose $150, and ten MNG lose $500. A short opened and closed at those same prices gains the corresponding amount. These calculations use the stated fills and exclude commissions and fees.
Ten MNG provide the same stated energy quantity as one NG for the same contract month. That ratio does not guarantee identical execution prices or total costs for ten contracts versus one.
Sources: NYMEX Chapter 220: Henry Hub Natural Gas futures · NYMEX Chapter 440: Micro Henry Hub Natural Gas futures
MNG uses cash settlement tied to the NG final price
NG has physical-delivery terms at Henry Hub near Erath, Louisiana. MNG is cash-settled. Under NYMEX Chapter 440, its settlement reference is the corresponding NG contract month’s final settlement price on that NG contract’s last trading day.
MNG stops trading one business day before NG. Its earlier trading cutoff does not mean its final settlement reference is fixed at the last MNG trade or at the NG price on that earlier day. An MNG position carried into settlement still depends on the specified NG final price.
Sources: NYMEX Chapter 220: Henry Hub Natural Gas futures · NYMEX Chapter 440: Micro Henry Hub Natural Gas futures
Check each dated contract’s last trading day
NG normally ends trading on the third business day before the first day of its delivery month. Chapter 220 also specifies how a later change to the exchange holiday schedule affects an already-listed expiry. Use the exchange’s listed contract date instead of counting back three calendar days.
For MNG, find the corresponding NG expiry and then the preceding business day. If NG’s last trading day were a Monday and there were no intervening holidays, MNG’s would be Friday, not Sunday.
Check any earlier closeout deadline imposed by your broker or account provider. These exchange specifications do not establish product access, holding permissions or payout rights in an evaluation or simulated-funded program.
Sources: NYMEX Chapter 220: Henry Hub Natural Gas futures · NYMEX Chapter 440: Micro Henry Hub Natural Gas futures