| How do finance professionals in the gas | | | | Price histories help gas professionals |
| market analyze the financial futures | | | | to get the big picture. The analyses |
| related to gas? Given the constantly | | | | undertaken by gas market professionals |
| fluctuating market prices, calculating | | | | are powered by data on the real-time gas |
| the financial future may not possible | | | | price, the price history, the trading |
| without a solid set of 'instruments'. | | | | volume history and other information. |
| The history of gas prices is a powerful | | | | Using these parameters, gas market |
| indicator of future trends. Gas market | | | | professionals observe price trends and |
| professionals use price history to gain | | | | trading patterns, and make informed |
| invaluable insight into the gas markets, | | | | decisions. Professionals also use price |
| regardless of whether they buy or sell | | | | histories to gauge spreads and |
| physical gas or deal with gas financial | | | | difference between prices, on futures |
| futures. Professionals undertake a | | | | contracts. For example, professionals |
| comparison of the current and historical | | | | might like to use price history to be |
| situations, along with the factors that | | | | able to hedge against price risks. |
| give rise to these, and determine the | | | | Today, more than half of the states in |
| particular direction of gas price | | | | the US use financial tools like futures |
| movements. | | | | contracts and weather risk insurance to |
| In the commodities futures markets, one | | | | stabilize the prices of gas. |
| can also witness the presence of a wide | | | | Price histories also help chart out |
| variety of gas derivative instruments | | | | particular trends in gas prices, and |
| that help to enhance financial | | | | they are correlated and compared to gas |
| performance in physical markets. These | | | | instruments in the energy or other |
| instruments are used by professionals to | | | | financial markets. Gas price history has |
| derive information that enables | | | | emerged as a widely accepted analytical |
| producers and consumers to seek | | | | tool to understand market fluctuations |
| precautionary measures against sudden | | | | in gas. Combined with an analysis of |
| price fluctuations, apart from serving | | | | seasonality, gas price histories can |
| as powerful vehicles of speculative | | | | provide a powerful look into the future. |
| investment. | | | | |