How Do You Buy Natural Gas Stocks?


Quick Answer

You can buy natural gas stocks from various publicly traded natural gas companies through any stock exchange. Apart from buying natural gas stocks, you can also invest in natural gas exchange-traded funds and natural gas futures, states CommodityHQ.com.

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Full Answer

Important to remember when purchasing natural gas stocks is that many natural gas companies are also involved in other sectors, such as transportation, storage or supply, reports TradingStocks. Because of these various involvements, their stocks may be influenced by undesirable factors. However, there are some companies primarily involved with natural gas, such as PetroHawk Energy Corporation, Stone Energy Corporation, SandRidge Energy and McMoran Exploration Co, says CommodityHQ.com.

An alternative way to invest in natural gas is to purchase natural gas exchange-traded funds. ETFs are used to invest in a particular commodity, currency, asset or derivative, states TradingStocks. There are several options available to invest in ETFs, such as United States Natural Gas Fund, Teucrium Natural Gas Fund, United States 12 Month Natural Gas Fund and The First Trust ISE Revere Natural Gas ETF, reported by CommodityHQ.com. However, every ETF invests in a different manner, so It is advisable to do research before investing in a specific one.

Another way to invest in natural gas is to invest in natural gas futures. Natural gas futures are contracts that are actively traded on the New York Mercantile Exchange (NYMEX) throughout the week. To invest in natural gas futures, you might need to have substantial capital and a bit of a risk tolerance because natural gas markets can be quite volatile.

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