Three major supply-side factors affect prices:
- Amount of natural gas production
- Level of natural gas in storage
- Volumes of natural gas imports and exports
Three major demand-side factors affect prices:
- Variations in winter and summer weather
- Level of economic growth
- Availability and prices of competing fuels
Either way, traders can play both sides with three times the leverage utilizing GASL or GASX. GASX seeks daily investment results of 300% of the daily performance of the ISE-Revere Natural Gas IndexTM, while GASX seeks daily investment resultsof 300% of the inverse of the daily performance of the ISE-Revere Natural Gas IndexTM.
GASX invests at least 80% of its net assets in securities that track the index and other financial instruments that provide daily leveraged exposure to the index itself, which takes advantage of both event-driven news and long-term trends in the natural gas industry. GASL invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse or short-leveraged exposure to the ISE-Revere Natural Gas IndexTM–also based on event-driven news and long-term trends.
For more investment strategies, visit the Leveraged Inverse Channel.