I’m interested in understanding how gold trading works in futures markets. Gold futures are essentially forward contracts, where gold serves as the underlying asset. Each such contract includes a whole set of parameters: a margin coefficient, delivery dates, minimum price increments, daily limits, and the settlement/execution method.

To start trading, you need to open an account with a futures company. Profit or loss on a position depends on the difference between the entry price and the exit price. If you hold the contract until it expires, physical delivery of gold will take place.

The most well-known market is New York Gold on COMEX (New York Mercantile Exchange). This is the largest and most liquid gold futures market in the world. On COMEX, both standard contracts are traded (100 ounces of gold with 99.5% purity per lot) and mini-futures (50 ounces). The minimum price step for mini contracts is 0.25 dollars per ounce.

New York gold futures operate on an open auction principle— the exchange simply provides the venue and infrastructure, without participating in the trades itself. Trading runs almost around the clock, 23 hours a day (except weekends). The only break is from 5:15 to 6:00 a.m. local time, when positions are settled.

At the same time, there is also an Asian market. The Shanghai Futures Exchange offers its own gold contracts with a lot size of 1 kilogram. Margin trading is implemented there with leverage of about 7 times. Trading is split into a day session and a night session, T+0 trading is supported, and two-way positions are allowed. The minimum price change is 0.02 yuan per gram, and the minimum margin is 8% of the contract value. During sharp market moves, temporary adjustments to parameters are permitted.

So, gold futures offer different opportunities depending on which exchange you choose. Each has its own features and trading terms.