Tutorialonline.my.id – Gold and Silver Futures.Hi Guys, I’m back again with me, the admin who is popular and the most hits here, the admin will discuss articles that are still being hunted by netizens around the world.
Case of endless gold accumulation. Today it is revealed, tomorrow there will be another repeated case, and investors are caught again. Based on records, the total customer funds trapped in various fraudulent investment scams or investments that are in the suspected category are at least IDR 45 billion.
Not endless, the business of buying & selling gold wrapped investment schemes continues to take its toll. After PT Golden Indonesian trader Suariah (AGTIS), Rahan Jewelry and PT Concept from Emas Asia (AGC), this time it was the turn of PT Arthaas Abadi (GAMA), which had failed to pay its customers bones.
If you are looking for inflation protection, speculative play, alternative investments and commercial hedges, future commodity contracts such as gold and silver may be the answer to your needs.
Trading in this market involves a high level of risk and is not suitable for everyone, and only risk capital should be used because investors can lose more than their investment. In this article, we will cover the basics of gold and silver futures contracts and how they are traded.
1. Precious Metal Futures
The future of precious metal commodities is a mutually binding agreement, either delivery of gold or silver in the future through an agreed price. Contracts defined by future commodity exchanges or markets on quantity, quality, time and place of delivery.
Only the price of that variable. Hedgers use contracts as a way to manage the price risk on their purchase or expected sale of the physical metal. It also provides speculators with the opportunity to participate in the market without physical support.
There are two different positions you can take on the market. Long positions (buy) are obligations to take delivery of the physical metal, and short positions are obligations to make deliveries. Most future contracts will be completed before the delivery date.
For example, this occurs when an investor with a long position takes the initiative to open a short position in the same contract, effectively removing the long position from the original.
2. Advantages of Future Contracts
Because trading on a centralized exchange, Futures Trading Contracts offers more financial advantages, flexibility and integrity of trading the commodity itself. Leverage is the ability to trade and manage the market value of a product for a fraction of the total value. In futures trading is done on a performance margin.
It requires capital, which is small compared to trading on the physical market. This effect gives speculators high investment risk. For example, one contract of 100 troy ounce gold futures, or one gold bar. The dollar value of this contract is 100 times the market price for an ounce of gold.
If the market is trading at $600 per ounce, the value of the contract is $60,000 ($600 x 100 ounces). Under the rules of the exchange on margin, the margin required to control the contract is only $4,050. So for $4,050, one can control $60,000 worth of gold.
As an investor, it gives you the ability to leverage $1 to control around $15. In futures market, it is very easy to start short positions like long positions, giving participants great flexibility. This flexibility provides hedgers with the ability to protect their physical positions and for speculators to take positions in the market.
While in exchanges where futures of gold/silver are traded, participants do not risk a profit, which is guaranteed by the net service. This means that the exchange acts as a buyer for each seller, and vice versa, reduces the raw risk better for their liability.
3. Contract Specification
The value of contracts on gold metal differs slightly on US exchanges: 1. COMEX and 2. eCBOT. The 100-troy-ounce contract is traded on the stock exchange and the mini-contract (33.2 troy-ounce) is only on the eCBOT. Silver also has two trading contracts on eCBOT and on COMEX. The contract is “big” to 5,000 ounces, which is traded on the exchange, while the mini eCBOT to 1,000 ounces.
4. Future Gold Contracts
Gold trades in dollars and cents per ounce. For example, when gold is trading at 600 per ounce, the contract has a value of $60,000 (600 x 100 ounces). A trader who is long in the 600 and 610 will make $1,000 (610-600 = $10 profit, 10 x 100 ounces = $1,000).
Conversely, a trader who goes long in 600 and sells at 590 will be a $1,000 loss. The price movement or ict size is at least 10 cents. The market may be of various types, but should move in increments of at least ten cents.
Both eCBOT and specify COMEX delivery to the vault from the New York area. This dome can be changed by exchange. The most actively traded months (according to volume and open importance) are February, April, June, August, October and December.
In order to maintain an orderly market, the exchange will adjust the position of the limit. The position limit is the maximum number of contracts a single participant can have. There are different position limits for hedgers and speculators.
5. Silver Future Contract
Silver is traded in US dollars per ounce as gold. For example, if silver is trading at $10 per ounce, a contract is “great” having a value of $50,000 (5,000 x $10 per ounce), while a mini will be $10,000 per ounce.
The check size is $0.001 per ounce, which equates to $5 per large contract and $1 for a mini contract. The market is unlikely to trade small differences, but can trade larger amounts, such as cents.
Like gold, shipping to inventory in the New York area. The active month is for sending good tidings. Silver, like gold, also has a limit position set by the exchange.