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Home > Electronic Trading > Metals
As we continuously state throughout our website - this is just our interpretation of the commodities industry - so, especially with the electronic contracts - please be sure to confirm things with your broker or the exchanges themselves - as things are "moving at the speed of the internet".

Electronic Trading of Metals Products - the major markets being traded electronically are gold and silver.

mini-sized Gold & Silver (traded at the Chicago Board of Trade):

For most people, buying and storing the physical form—coins, bullions, bars—is probably not a practical choice as an investment. The most likely alternatives are some form of stock ownership or futures (or options on futures).

CBOT mini-sized Gold CBOT mini-sized Silver

Contract size 33.2 fine troy ounces 1,000 troy ounces

Ticker symbol YG YI

Trading platform 100% Electronic 100% Electronic

Tick size $.10/oz ($3.32/contract) $.001/oz ($1.00/contract)

Trading hours 7:16 p.m.-4:00 p.m.
(CST) 7:16 p.m.-4:00 p.m.
(CST)

These CBOT precious metals markets combine the speed and efficiency of electronic trading with the liquidity the CBOT market maker provides. The benefits to an active trader are huge:

Faster fills mean you can more easily capture the moves you see on your screen

Tighter bid-ask spreads minimize trading costs

Continuous two-sided markets offer easy access

Strong volatility generates opportunity

Smaller contract size makes it easier to diversify and make the most of your trading capital

CBOT margins, relative to contract size, deliver more bang for your trading buck

Longer trading hours, provide virtually round the clock trading opportunities

Contract Value
The contract value of CBOT mini-sized Gold or Silver futures is the product of the number of ounces and the futures price. For example, if gold is trading $355.80 a troy ounce, the value of one contract is $11,812.56 (33.2 oz. x $355.80/oz.). A $10 increase in the futures price would result in a $332 gain (33.2 oz. x $10/oz.) if you were long (bought) one contract. If silver is trading $4.50 a troy ounce, the value of one contract is $4,500.00 (1,000 oz. x $4.50/oz.). A $0.35 decrease in the futures price would result in a $350 gain (1,000 oz. x $0.35/oz.) if you were short (sold) one contract.

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DISCLAIMER: Futures Trading involves a huge risk of financial loss! FuturesKnowledge.com is a traders research and resource site - and is not meant to be used as a guide for trading. Due to the large risk involved - we highly recommend that you consult with a number of different resources before attempting to invest in the futures, commodities, options, or any other market we report on.