If you've ever wondered how gold is traded on global markets, then gold futures are exactly what you need to understand. Essentially, these are forward contracts where gold acts as the underlying asset, and all trading mechanics are built around the price difference between entry and exit positions.

To start trading, you need to open a futures account with a company. Key parameters of any contract include the margin coefficient, delivery month, minimum fluctuation range, and delivery method. If you hold the contract until expiration, physical delivery of gold will occur. It sounds complicated, but in practice, it’s a fairly straightforward system.

The most well-known market is COMEX in New York, the largest and most active gold futures market in the world. They trade both standard contracts (100 ounces of 99.5% pure gold) and mini-contracts (50 ounces). The minimum price movement is $0.25 per ounce. An interesting point: the exchange itself does not participate in trading; it simply provides the platform and sets the rules, ensuring fair transactions. Trading occurs almost 24 hours a day—23 hours daily, except weekends, with a break for settlements from 5:15 to 6:00 a.m. local time.

There are also alternatives. The Shanghai Futures Exchange offers its own gold contracts with a volume of 1 kilogram per lot. They use margin trading with leverage of about 7 times, support T+0 trading, and allow two-way positions. The minimum price change is 0.02 yuan per gram, and the minimum margin is 8% of the contract’s value. However, during strong market fluctuations, these parameters may temporarily change.

If you are seriously interested in gold futures, keep in mind that it requires understanding margin trading and risk management. Each exchange has its own features, so it’s important to thoroughly study the rules before starting to trade.