Gold futures are actually an interesting instrument for those who want to trade gold without purchasing it physically. Essentially, these are forward contracts where gold acts as the underlying asset. To start trading, you need to open an account with a futures company and understand the key parameters: margin, delivery month, minimum price fluctuations, daily movement limits, and the delivery method.

Profit or loss from gold futures depends on the difference between the entry and exit prices. If you hold the contract until it expires, physical delivery of gold will take place. The most well-known contract is New York gold on the COMEX exchange, which remains the largest and most active global market for gold futures.

On COMEX, two main instruments are traded. The standard gold futures contract is for 100 ounces with 99.5% purity. There are also mini contracts for 50 ounces, where the minimum price movement is $0.25 per ounce. Trading there works like a quote system, similar to stocks. The exchange itself does not participate in the trading; it simply provides the venue and sets rules so that both sides of the transaction act fairly and reasonably. Gold futures trading in New York runs in practice almost 24 hours a day—23 hours per day, except on weekends. There is only a break from 5:15 to 6:00 a.m. local time for settlement.

The Shanghai Futures Exchange also offers gold contracts, but with different parameters. There, one lot is 1 kilogram of gold. Interestingly, they use margin trading with leverage of about 7 times. Trading is divided into a day session and a night session, they support T+0 trading and two-way transactions. The minimum price change per gram is 0.02 yuan, and the minimum margin is 8% of the contract value. However, during periods of major market fluctuations, these parameters may temporarily change.

So, if you’re interested in gold futures, it makes sense to choose the platform that best matches your trading style—COMEX for global trading or the Shanghai exchange for a more localized approach.