I've noticed that more and more people are interested in gold futures as a tool for trading and hedging. Let's understand what they are and where you can trade them.

Essentially, gold futures are forward contracts where gold is the underlying asset. When you open a position, you agree to buy or sell a certain amount of precious metal at a fixed date in the future. Profit or loss is determined by the difference between the entry and exit prices.

The contract itself specifies important parameters: margin size, delivery month, minimum price step, daily price fluctuation limits, and the physical delivery method if the contract is held until expiration.

Where to trade? The largest platform is COMEX in New York. It concentrates the main liquidity of the global gold futures market. Standard contracts are for 100 ounces, and mini-contracts are for 50 ounces. Gold purity is 99.5%. The minimum price change is $0.25 per ounce. The New York exchange operates almost 24 hours a day—23 hours with a break for settlements from 5:15 to 6:00 a.m. local time.

An important point: the exchange itself does not participate directly in trading. It provides the infrastructure, sets the rules, and guarantees that both parties act fairly and reasonably. Trading is conducted through a quotation mechanism, similar to the stock market.

If you prefer Asian markets, check out the Shanghai Futures Exchange. There, gold contracts are for 1 kilogram, and leverage of about 7 times can be used. The minimum margin is 8% of the contract value, and the price step is 0.02 yuan per gram. The Shanghai exchange supports T+0 trading in both directions, with separate day and night sessions. During sharp market fluctuations, temporary changes to margin requirements may be introduced.

To start trading gold futures, you need to open an account with a futures broker and fund it with margin. This doesn’t require large capital thanks to leverage, but remember the risks that come with any leverage. The choice between COMEX and Shanghai depends on your time zone, preferred liquidity, and trading style.