Energies » Propane Futures

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Symbol
PN
Exchange
NYMEX
Contract Size
42,000 US Gallons
Tick Size
0.0001 = $4.20

About NYMEX Propane Futures

Propane is a by-product of natural gas processing and oil refining. U.S. demand is approximately one-third that of heating oil. Propane is used in diverse markets: residential cooking, crop-drying in agriculture, space heating in homes and industry, and as a feedstock for the production of vital petrochemicals. Natural gas utilities often store propane for use during periods of peak demand.

Propane futures and options provide individual investors with a convenient way to participate in an essential energy market. Due to the volatility of propane futures, this market offers the potential for quick and substantial profits and is therefore attractive to speculators. At the same time, however, this is a treacherous market in which speculators can suffer losses. In addition, a broad cross-section of companies - from those involved in exploration and production of natural gas to substantial consumers of energy - can use propane futures and options contracts to hedge their price risk. The NYMEX propane contract trades in units of 42,000 gallons (1,000 barrels), and provides an effective pricing and risk management tool for the gas liquids sector of the energy industry.

In addition to propane futures, NYMEX also lists futures on crude oil, heating oil, and unleaded gasoline. All of these products are available for trading through optionsXpress.

NYMEX Propane Futures Specifications

Propane futures, New York Mercantile Exchange, Symbol PN. Minimum Tick Size and Value: 0.0001 per gallon, worth $4.20 per contract.

Electronic trading is conducted from 6:00 PM US until 5:15 PM US EST via the CME Globex® trading platform, Sunday through Friday.

Primary propane futures contracts trade every calendar month, from January through December.

Please see the disclosures page for additional information regarding this section.