What are the margin requirements for silver?

Real World Silver Futures Trading 6 A full silver futures contract requires a fixed price margin amount of $12,375. It means that one needs to maintain a margin of only $12,375 (instead of the actual cost of $78,500 in the above example) to take one position in a full silver futures contract.

How many ounces of silver are in a Comex contract?

The COMEX silver contract calls for the delivery of 5,000 troy ounces of the metal. Contracts have delivery dates stretching from one to 60 months into the future. The CME also trades a 2,500 troy ounce contract that settles with cash rather than physical delivery of silver.

What is the margin requirement for gold futures?

Each gold futures contract represents 100 ounces and requires an initial margin of $4,950 and a maintenance margin of $4,500. Since the investor’s account is $5,000, which is slightly more than the initial margin requirement, they can therefore open a position in one gold futures contract.

What’s the margin on gold on the Comex?

For example, in February 26, 2016, the CME Group raised margins on gold futures. Thus, as of April 10, the initial margin in the main 100-ounce gold contracts on the Comex division of the New York Mercantile Exchange is $4,950, while the maintenance margin for existing accounts is $4,500.

Do you have to have a silver margin on a futures contract?

In the futures exchange, investors and entities do not have to post the total value of the silver futures contract as collateral in their accounts. Instead, a silver margin requirement is required, which is only a small part of the value of the contract.

When to jack up margin requirements for silver?

Theoretically, the COMEX is supposed to jack up the silver margin requirements when there is high silver futures contract volatility (e.g., silver 2008 prices, silver 2011 prices ). Often if one reads or listens upon short term spot silver price action.

Do you need margin on a gold contract?

Instead, a margin is required, which is only a small part of the value of the contract. There are two types of margins in the gold futures markets such as Comex.