Comments on: DGAZ Trade Setup https://rightsideofthechart.com/dgaz-trade-setup/ Stock Trading, Investing & Market Analysis Tue, 17 Sep 2019 13:30:34 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: rsotc https://rightsideofthechart.com/dgaz-trade-setup/#comment-7593 Tue, 17 Sep 2019 13:30:34 +0000 https://rightsideofthechart.com/?p=192992#comment-7593 FYI- /QG is the symbol for the ‘mini’ natural gas futures contract which trades as the same price as the traditional contract, /NG, but with 1/4th the leverage factor employing a multiplier of 2500 vs. the 10,000 multiplier on /NG Price X multiplier = how much $$ you have exposed to natural gas prices so if you shorted 1 contract of /NG at 2.652 (current price) you would effectively be short $26,520 of natural gas vs. $6,630 per contract of /QG.

As such, one could use /QG in lieu of /NG for a smaller net exposure to nat gas while using the same technical levels (support, resistance, trendlines, etc..) on the /NG charts. DGAZ is fairly liquid as well, at least during the regular trading session so the biggest benefit to trading futures over the nat gas tracking ETNs, such as DGAZ, UGAZ, UNG, etc. is the ability more effectively manage risk by using GTC stop-loss orders that can be triggered in the overnight hours, should nat gas price start to move sharply against your position. (i.e.- No waking up to a huge gap against a position in UGAZ or DGAZ due to a big rally or drop in nat gas futures overnight).

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