Natural gas · Replay

What the protection did

Your purchase of 10,000 MMBtu priced on NYMEX December settlement (your purchase price), with protection above $3.00 bought on Monday 26 October.

Paid up front

$5,970.52

Derived

10,000 contracts at 0.58, plus $170.52 fee

Paid back

Public record

Settled NO on a 2.883 fixing

Net result

−$5,970.52

Derived

The protection was not triggered

Pays when

Above 2.999

Public record

Pyth 24/7 index close at 5:00 PM ET, 30 Oct

Net result by the 5:00 PM price on 30 October

Net result of the protection
What happened

Net result by the 5:00 PM price on 30 October. At or below 2.999 the net result is −$5,970.52. Above 2.999 it is +$4,029.48. The recorded price was 2.883, so the net result was −$5,970.52.

Cash timeline

Mon 26 Oct · you pay $5,970.52Contracts and fee, at the recorded close
Fri 30 Oct, 5:00 PM · Pyth index close 2.883At or below the 2.999 level, so the contracts settle NO
Fri 30 Oct · payout $0The venue records settlement at 6:00 PM ET
Your invoice date Your inputAdd it to line up the bill against the payout

What it covered

Covered: A Pyth 24/7 index close above 2.999 at 5:00 PM ET on 30 October
Not covered: Rises that ended at or below 2.999 on the index; any difference between the index and NYMEX December settlement; basis to your delivery point; changes in your volume

The contract settles on the Pyth Natural Gas 24/7 index and names no futures month. A difference from your NYMEX December price is measured, not assumed.

Before you decide

Not assessedAccounting treatment
Not assessedRegulatory classification
Your inputBudget level for this purchase