Gold Futures and Options

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Why Trade COMEX Division Gold Futures and Options? (con't)

Gold's importance in world markets and responsiveness to world events make COMEX Division gold futures and options an important risk management tool for commercial interests as well as an exciting, potentially rewarding opportunity for those investors who seek to profit by correctly anticipating price changes.

Trading on the COMEX Division offers a number of advantages:

• The contracts are standardized by quality and quantity, are widely accepted, and, therefore, are liquid financial instruments.
• The Exchange offers cost-efficient trading and risk management opportunities.
• COMEX Division gold prices are widely and instantaneously disseminated, serving as world reference prices.
• COMEX Division markets allow hedgers and investors to trade anonymously through futures brokers.
• The depth of the market allows the contract to be easily liquidated prior to required receipt or delivery to the underlying commodity.
• While futures contracts are seldom used for delivery, if delivery is required, performance is guaranteed. There is no counterparty credit risk.
• Contract performance is supported by a strong financial system, backed by the COMEX Division clearing members, including some of the strongest and most respected names in the banking and financial services industries.
• The Exchange offers safe, fair, and orderly markets protected by rigorous financial standards and surveillance procedures.

Gold Futures

Futures contracts are firm commitments to make or accept delivery of a specified quantity and quality of a commodity during a specific month in the future at a price agreed upon at the time the commitment is made. Less than 1% of all gold futures contracts trade result in delivery. Instead, traders generally offset their futures position before their contracts mature. The difference between the initial purchase or sale price and the price of the offsetting transaction represents the realized profit or loss.

Trading in COMEX Division gold futures is conducted for delivery during the current calendar month, the next two calendar months, and February, April, August, and October thereafter falling within a 23-month period, and any June and December falling within a 60-month period, beginning with the current month.

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See also the Gold Futures Options Trading Special Report

New York Merchantile Exchange Gold Futures Trading Specifications and Gold Options Trading Specifications