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My energy contract will be renewed at the end of the year. The extremely large increase in the natural gas price means that I'm not going to opt for a fixed energy price for several years, I'll instead opt for flexible rates, which means that the energy company can adjust the natural gas price after 6 months. I then want to insure against an unexpected hike in the gas price after half a year. This requires a contract on a futures market for natural gas, but I can't find such a market where contracts for some fixed gas price are traded.

Count Iblis
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    Is this really about your personal finances? – Brian Borchers Oct 04 '21 at 01:21
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    AFAIK the futures contract usually work in numbers way above the typical household consumption; IIRC eggs contracts were of 1 million eggs each contract. So you would enter a far higher risk in the futures market that you would be insuring against. And of course, being an small fish without knowledge of how the market works seems like a perfect opportunity to lose money, even if the market is profitable in general (remember that in last May/June it was in the news that some future oil contracts were sold at negative prices). – SJuan76 Oct 04 '21 at 08:54
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    @BrianBorchers If the goal is to hedge your own electricity price then I think so! – user253751 Oct 04 '21 at 10:22
  • @SJuan76 if you perfectly hedge your own electricity price the result will be spending a fixed price on electricity. The risk of losing money is the chance that the electricity price will be lower than what you locked in. – user253751 Oct 04 '21 at 10:23
  • There is an e-mini natural-gas future with a margin deposit of about $1450. There are also natural-gas ETF's would would allow for small positions. But is the hedger sure that they don't want to speculate ? Are they sure that they don't want to sell natural-gas ? – S Spring Oct 04 '21 at 14:50
  • Oh, buying the stock an integrated oil company, with a large natural-gas production, could be a good hedge. Well, it's already up more than 10% within the last week or so. – S Spring Oct 04 '21 at 15:59
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    Related: Can I hedge my household expenses using the financial markets? – Flux Oct 04 '21 at 16:23

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