What It Means
MCX Natural Gas is a futures contract on natural gas, priced and settled based on international benchmark prices (primarily the US Henry Hub rate) converted to rupees. The standard contract represents 1,250 mmBtu (million British thermal units) per lot; a Mini version represents 250 mmBtu for traders who want smaller exposure.
How It Works
Both contracts have a tick size of ₹0.10 per mmBtu, so a one-rupee move in price changes the standard lot's value by ₹1,250 and the Mini lot's by ₹250. Natural gas is one of the more volatile MCX contracts because the US Energy Information Administration's weekly storage data, released every Thursday, routinely moves Henry Hub prices sharply, and that volatility carries straight through to the MCX contract. Contracts are cash-settled monthly; there's no physical delivery option for retail traders.