Let's understand what a gold futures contract is and how to trade it. Essentially, it is a forward contract where gold acts as the underlying asset. When I first started exploring this instrument, I was surprised by how many nuances each contract has.

The structure of a gold futures contract includes a margin coefficient, delivery month, minimum price step, daily movement limits, and the method of physical delivery. To start trading, you need to open an account with a futures company. Profit or loss is calculated simply — the difference between the entry and exit prices. If you hold the position until expiration, physical delivery of gold will occur.

The largest and most active market is COMEX in New York. They trade both standard contracts (100 ounces with 99.5% purity) and a mini version (50 ounces). The minimum fluctuation step for mini contracts is $0.25 per ounce. Interestingly, the exchange itself does not participate in trading but only provides the platform and sets rules for fair trading among participants. Trading is almost round-the-clock, except on weekends and from 5:15 to 6:00 a.m. New York time, when settlement occurs.

Looking at the Asian market, the Shanghai Futures Exchange also offers its own gold futures. One contract there is 1 kilogram, and trading leverage is about 7 times. The minimum margin is 8% of the contract's value, and the minimum price step is 0.02 yuan per gram. Conveniently, T+0 trading is supported in both directions, plus division into day and night sessions. However, during strong market fluctuations, requirements may temporarily change.

This is what a gold futures contract is — an instrument with a rich history and various options for trading depending on where you are and what strategies you use.