Silver Futures


Silver Futures is a strategy of buying silver futures contracts. Like other futures contracts, the silver futures contract is a standardized forward contract to buy or sell a specific amount at a predetermined price and set date in the future.

More About Silver Futures

Continue reading to learn more about:

Futures
Contract size
Expiration dates
Trading strategy
Margin requirements


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Futures


Futures are a contract for buying or selling something in the future. A futures contract for silver is a binding agreement to buy or sell an amount of silver at today's price on a certain date in the future. For example, if you own a futures contract for silver and you buy it with the intention of selling it later, you have to make sure that when you sell it, it has the same value as it does when you buy it.


 
 

Contract size


Silver futures have a standard contract size of 5,000 troy ounces. This contract size is designated to allow easy trading and one big advantage of the futures market is that contracts are standardized. If you wanted to, you could trade as little as one third of a silver future or 2,000 ounces, all the way up to 100 silver futures contracts of 5,000 ounces each. This allows flexibility in trading strategies and can potentially help investors avoid large initial investment requirements or costly market timing errors.

 

Expiration dates

•In the silver futures market, we have expiry dates that are known as electronic trading hours (ETH). ETH periods mark important dates where the open price of silver contracts change. For example, the Silver Jan 2014 ETH is on December 26, 2013. The Silver Feb 2014 ETH is on January 16, 2014. The Silver Mar 2014 ETH is on February 17, 2014. The prices of contracts for this period will increase as the expiration date gets closer and decrease before it arrives since traders have time to react.
•A futures contract is an agreement to buy or sell a stock or commodity at a specified price on a certain date in the future. Many retail investors should use multi-month, silver futures charts because shorter term, prices often fluctuate too much to use in your trading strategy.
 
  • Trading strategy

    Silver Futures is a trading strategy that can be used before silver futures open to help you determine if there is a chance for a trend to continue or shift into the opposite trend of what it had been doing before silver futures opened. This tool gives you the ability to have time and not have be glued to a trading screen all day, while still trying your best to catch any good moves that can be made before silver futures opening.
  • Margin requirements

    Silver Futures margin requirements are set by the Commodity Futures Trading Commission (CFTC), which is a U.S government organization that regulates the futures markets. The silver futures margin requirement can be found on the CFTC website, and helps set how much money you need to make a trade in silver futures.