Much like futures, options contracts will always have an expiry date. However, the key difference is that there is no obligation to buy and sell the asset when trading options. Instead, as the name suggests, you are given the ‘option’ to make the purchase. When trading in options contrac...
Gold futures and options Gold futures contracts are firm commitments to make or take delivery of a specified quantity and purity of gold on a prescribed date at an agreed price. The initial margin – or cash deposit paid to the broker – is only a fraction of the price of the gold ...
Trading MethodOwnershipManagement CostsSecurity CostsExpiry DateMgmt CostLeverage Bullion✅✅✅❌❌❌ CFDs❌❌❌❌❌✅ Futures❌❌❌✅❌✅ Options✅*❌❌✅❌✅ ETFs/Mutual Funds✅✅✅❌✅❌ Shares✅❌❌❌❌❌ ...
When you purchase futures, you can sell them at any point before the date of expiry If you are still holding the gold futures when they expire, you have a legal obligation to purchase the asset Most gold futures are settled in cash, meaning that you wouldn’t need to take physical delive...
Gold futures Symbol: GOLD Currency: Indian Rupee Contract size: 1 kg (minimum quantity that can be bought and sold) Underlying: gold of minimum 995 fineness. Premium added for gold delivered greater than 995 fineness Price Quotation: 10 grams (the quantity for which price is quoted for trading...
Generally speaking, the buyers and sellers of gold futures sell and repurchase contracts with the same number of previous contracts before the expiry date of the contract, and do not need to actually deliver the same amount. The profit or loss of each exchange is equal to the difference betwee...
An investor who buys a call option on a security has the right to buy that specific security at the strike price by the option’s expiration date. An investor who buys a put option on a security has the right to sell that security at the strike price by the option’s expiration date....
The hedges we analysed fall across three categories:18 Volatility-based: VIX short-term future: The S&P 500 VIX short-term futures index, an index of rolled front month VIX futures (rolls between 1st and 2nd future). The shorter maturity future has a greater response to volatility but ...
silver prices move in the wrong direction, you may find yourself on the hook for significant losses and subject tomargin calls. Futures trading also requires careful monitoring ofcontract expiration, with many traders opting to roll forward to longer-dated futures contracts as the expiry date ...
with the contract settling at a specific date. With gold and silver futures contracts, the seller promises to deliver the gold to the buyer at the contract expiry date. Until the delivery happens, the buyer will not own the gold and will only...