Trading in natural gas involves purchasing and selling the commodity derivative. However, making wise judgments requires knowing when the market is best to trade natural gas.
We’ll explain Natural Gas Trading Time in this article. We’ll also look at how MCX Natural Gas is affected by the US market.
What Defines Natural Gas Market?
The Petroleum and Natural Gas Regulatory Board (PNGRB) is in charge of overseeing the natural gas market in India, which includes production, distribution, and consumption along the whole value chain.
Notable participants comprise GAIL, ONGC, and private businesses. Natural gas is used in transportation, industry, and the production of power.
India’s market is booming due to the country’s increasing energy demand, which is being met by government initiatives to build out the nation’s natural gas infrastructure.
This aligns with the goals of lowering carbon emissions and advancing sustainable energy sources. Natural Gas futures and options are two derivatives on which you can trade this energy commodity on exchanges such as MCX.
Commodity Market Trading Time
It’s critical to understand commodity trading hours and times if you’re interested in trading commodities. Commodity markets follow a different timetable than stock markets, and trading hours change based on the commodity you are trading.
Traders need to understand these market timings to make well-informed judgments and optimize profits. The commodity market is made up of three main regions,
- Asiatic,
- European,
- American
Every session has distinct characteristics and trading hours. It is noteworthy that certain commodities, including crude oil and gold, have longer trading hours because of their increased demand. Understanding these differences in commodities trading hours is crucial for traders to seize advantageous chances and profit from market fluctuations.
Furthermore, knowing the market time for commodities trading facilitates traders’ ability to organize their approaches, keep an eye on trends, and make defensible choices. Traders can remain ahead of the game and increase their profits by staying up to date with the commodity market trading hours.
Natural Gas Trading Time in India
India’s natural gas trading time is set up to promote effective market operations. Natural gas trading sessions are offered Monday through Saturday and are split into two-time slots:
Morning Session
- Trading Hours for the Morning Session: 9:00 AM to 5:00 PM
Market participants actively buy and sell natural gas futures throughout the early session.
Evening Session
- Trading Hours for the Evening Session: 5:00 PM to 11:30 PM/11:55 PM
An extra trading window is available during the evening session. This enables dealers to carry on with their business and guarantees flexibility in natural gas trading all day and into the evening.
Natural gas is one of the Indian commodities that are mentioned from US markets; they are usually the front month contracts. The nighttime session is crucial because it enables traders to respond quickly to events in the United States.
The MCX stays open for business until 11:55 PM, extending its commodity trading hours by 25 minutes when the United States observes daylight savings time. Price references are synchronized with the U.S. market thanks to the MCX extension.
Benefits Of Knowing Natural Gas Trading Time
It’s critical to understand natural gas trading hours for several reasons.
Involvement in the Market
To engage in active trading in the natural gas market, you should be aware of the trading hours. Knowing when it’s open enables you to take advantage of the best opportunity to buy or sell, particularly during natural gas expiry.
Managing Risks
It is essential to comprehend trading periods if you want to effectively manage your risks. During trading hours, you can place stop-loss orders if you know when the market opens. This can protect your money from unforeseen fluctuations in value.
Finding of Prices
Being aware of Natural Gas trade times allows you to monitor price changes. Changes in supply might have an effect on prices during the day. This enables you to decide on trades based on knowledge about the state of the market.
Strategy and Planning
You must know natural gas trading timings. It helps you to properly plan out your trades. You can maximize your trading decisions by selecting the ideal time throughout the morning or evening sessions based on your objectives.
Liquidity of the Market
As an active trader, being aware of trading times is vital to make use of market liquidity.
Affect Of US Market On MCX Natural Gas
You should keep a careful eye on the effects of the US market as an MCX Natural Gas trader.
MCX Natural Gas prices can be greatly impacted by changes in US Natural Gas prices, which are influenced by supply, demand, and weather.
An increase in gas prices in the US can spur demand worldwide and raise MCX prices as a result. Conversely, MCX Natural Gas rates may experience a decline in response to declining US gas prices.
Making educated trading selections requires being aware of these relationships and keeping up with US market trends.
Bonus Tip: Boost Your Natural Gas Trading Profits
Like trading any other commodity, trading natural gas in India has unique risks and considerations. Before you trade natural gas in India, keep the following points in mind:
1. Knowledge of the Market of Natural Gas
Learn about the Indian Natural Gas market before you trade. Examine the variables that affect supply and demand, pricing strategies, and market players.
2. Rules and Compliance
Your natural gas trading operations must comply with the regulatory framework established by SEBI and other relevant Indian authorities.
Tight compliance with regulations reduces the possibility of regulatory breaches and fosters an open and legally compliant trading environment.
3. Broker Selection
You need to choose a commodity trading platform that offers far more functionality than just order placement. Features like margins, charts, special orders, and much more must be included.
Selecting a broker and platform like this will enable you to trade natural gas with amazing features and accomplish much more with your trading funds.
4. Trading Hours
Pay attention to the hours in India during which you can actively purchase or sell natural gas. Knowing these hours is crucial since they determine when you can execute transactions, keep an eye on market activity, and decide which positions to take.
Conclusion
Knowing the trading hours is important because timing is crucial when it comes to trading natural gas in India. You should also be aware that although trading occurs throughout two sessions, price fluctuations occur throughout the day due to the market’s strong sensitivity to numerous factors. Making decisions in this sector requires keeping up with global trends and market conditions.