Futures contracts are a common tool used in natural gas hedging. These contracts allow buyers and sellers to agree on a future price for natural gas, providing a way to lock in prices and manage risk. This article explains how futures contracts work, how they are traded on exchanges, and the advantages of using them for hedging. Companies can protect themselves from price fluctuations by entering into futures contracts, ensuring more predictable financial planning. Examples and case studies illustrate successful applications of futures contracts in natural gas hedging.