Thursday 21 April 2011

Trading Natural Gas

When commodities trading it is often important to understand the commodity you are planning to trade, particularly who makes it, who buys it, and what factors are likely to affect supply and demand.

This will frequently drive the price. It pays to do a little homework, especially if you are thinking of trading anything other than oil or gold, which tend to be the most popular commodity spread bet markets.

In this article we take a closer look at what has been powering prices for natural gas recently. Natural gas is readily available for commodities trading as a spread bet or CFD contract. Usually, natural gas prices rise over the winter months in the northern hemisphere, and then fall in the spring, but the earthquake in Japan has not only profoundly shaken the country causing massive damage and loss of life, the fallout from what is happening with its nuclear power stations is also spilling into global commodities trading.

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