Get the same benefits as the world’s leading Precious Metals futures benchmarks, but for a smaller up-front initial margin.
Nearly 24-hour trading, no management fee, ability to short positions, and more.
WELCOME TO FUTURESHaving a mix of different investment types in a portfolio can help cushion against wide swings in key sectors during uncertain markets.
Many traders use metals like gold as a store of value when other markets (like equities) are turbulent.
PORTFOLIO DIVERSIFICATIONControl a larger contract value with a smaller amount of money upfront – that’s the power of leverage inherent in futures.
Capital efficiency means you can enjoy potentially greater upside and lower trading costs compared to a basket of company stocks or ETFs.
POWER OF LEVERAGEFutures offer straightforward exposure to underlying metals, avoiding the slippage and tracking errors that can come with ETFs and stocks.
Futures let you trade the cash value of set quantities (in oz) of gold, silver and palladium.
Benefits of Precious Metals futures vs ETFsWatch Dave Lerman as he reviews what every active trader should know about CME Group suite of micro and mini futures products.
As you get ready to start trading these smaller-sized futures contracts, find out everything you need to know.
In the webinar, Dave will share:
Learn why you should consider Micro Metals futures as part of your trading strategy.
Learn the contract details for trading our Micro Metals futures:
| Micro Gold | Micro Silver | |||||||
|---|---|---|---|---|---|---|---|---|
| UNDERLYING MARKET | Gold, a widely used precious metal | Silver, a widely used precious metal | ||||||
| CONTRACT SIZE | 10 troy ounces | 1,000 troy ounces | ||||||
| RATIO TO STANDARD CONTRACT | 1/10 of COMEX Gold futures | 1/5 of COMEX Silver futures | ||||||
| MINIMUM TICK/ PRICE FLUCTUATION | $0.10 per troy ounce | $0.01 per troy ounce | ||||||
| DOLLAR VALUE OF ONE TICK | $0.10 per troy ounce | $10 per contract | ||||||
| PRODUCT CODE | MGC | SIL | ||||||
| SETTLEMENT | Physical | Physical | ||||||
| TRADING HOURS | Sunday – Friday 5:00 p.m. – 4:15 p.m. CT with a 45-minute break each day beginning at 4:15 p.m. CT | |||||||
See how futures compare to other trading instruments, such as exchange-traded funds (ETFs).
| FUTURES | ETFs | |
|---|---|---|
| Management fees | None. Futures have no annual management fees. | ETFs often have annual management fees. |
| Capital efficiencies | Futures margin is capital-efficient, with performance bond margins usually less than 5% of notional amount ** | Reg T margins with stocks and ETFs are 50% of the value of the stock or ETF. This is far larger than futures. |
| Nearly 24-hour trading access | Micro Metals futures are available to trade over 23 hours, five days a week | While some firms offer after-hours trading, ETFs do not trade around the clock like futures |
| Tracking to underlying | Trading Micro Metals futures will give you direct access to the underlying metal’s physical market and true price. | Many metals ETFs use futures positions to provide underlying oil or natural gas market exposure. When the metals futures roll approaches, gold, silver and palladium ETFs often lose some of their correlation to the underlying market, which can inflate your costs due to slippage |
| Possible tax advantages*** | A profitable short-term trade using futures may be subject to less taxes than using an ETF, due to IRS Section 1256 treatment (60/40 blend of short- and long-term gains) | Typically, short-term profits with ETFs pay ordinary income rates. |
** Source: CME Group.
**** The information provided here should not be considered tax advice. Please consult your tax advisor before making any investment. Information provided can depend on holding period and time horizon.
Looking for new trading opportunities or more capital efficiencies in managing portfolio risk? See why futures may be right for you.
INTRO TO FUTURES