Interesting topic — gold futures. Many people don’t quite understand how they work, even though it’s one of the most liquid instruments on the market. I’ll share what I’ve learned while studying this.

First of all, a gold futures contract is a forward contract where gold acts as the underlying asset. To start trading, you need to open an account with a broker that specializes in futures. Profit or loss depends on the difference between the entry and exit prices. If you hold the contract until expiration, physical delivery of gold occurs.

The most well-known market is COMEX in New York. Honestly, it’s the king of gold futures in the world. They trade regular contracts (100 ounces, 99.5% purity) and mini contracts (50 ounces). The minimum price step is $0.25 per ounce. The exchange functions as a platform for matching quotes; it does not participate in trading itself, simply ensuring fairness and transparency. Trading runs 23 hours a day, except on weekends, with a break for settlements from 5:15 to 6:00 a.m. local time.

There’s also the Shanghai Futures Exchange — they also offer gold futures, but with their own parameters. One contract there is 1 kilogram. An interesting point: they provide leverage of about 7 times, allowing trading with a margin of only 8% of the contract’s value. Trading is divided into day and night sessions, supporting T+0 and two-way positions. The minimum step is 0.02 yuan per gram. During strong market fluctuations, margin requirements can temporarily increase.

Key parameters of any gold futures contract are the margin ratio, delivery month, minimum fluctuation range, and delivery method. If you understand these details, trading becomes much clearer. Each exchange has its own rules, so before you start, it’s best to study the specific contract specifications of the platform.