Natural gas futures are contracts that obligate the buyer to purchase a certain amount of natural gas at a set price on a future date. They are traded on an exchange, and the price of a natural gas futures contract is determined by the forces of supply and demand.
Natural gas futures are used by a variety of market participants, including producers, consumers, and speculators. Producers use natural gas futures to lock in a price for their product, while consumers use them to hedge against the risk of rising prices. Speculators use natural gas futures to bet on the future price of the commodity.