Description
of CBOT mini-sized Metal Futures
The
Gold e-mini is 33% of the large contract (100 oz), with one contract
consisting of 33.2 fine troy ounces. The Gold e-mini trades on the
Chicago Board of Trade (CBOT). It ticks in 10 cent increments (or $3.32
per contract) with a whole point move representing $33.20. The initial
margin requirement (per contract) is $432, while the maintenance requirement
is $320. The initial maintenance requirement roughly represents the
price of one troy ounce of gold, giving the trader high leverage (about
33 to 1).
The Silver e-mini represents 20% of the large contract
(5,000 oz), with one contract consisting of 1,000 troy ounces. The
Silver e-mini trades on the Chicago Board of Trade (CBOT). The tick
size is one tenth of a cent ($0.001), with each tick move representing
a $1 change per contract. The initial margin requirement (per contract)
is $432, and the maintenance requirement is $320. The initial maintenance
requirements roughly represent the price of 60 troy ounces of silver.
While this is not as highly leveraged as the gold mini, it is still
substantial at approximately 16 to 1.
For more information
Call 800-424-3934 or email support@mastertrader.com
An investment
in futures contracts is speculative, involves a high degree of
risk and is suitable only for persons who can assume the risk of
loss in excess of their margin deposits. The high degree of leverage
that is often obtainable in futures trading can work against you
as well as for you and, as a result, can lead to large losses as
well as gains. If you purchase or sell a futures contract, you
may sustain a total loss of your initial margin funds and any additional
funds that you may deposit to establish or maintain your position.
If the market moves against your position, you may be called upon
to deposit a substantial amount of additional margin funds, on
short notice, in order to maintain your position. If you do not
provide the requested funds within the prescribed time, your position
may be liquidated at a loss, and you will be liable for any resulting
deficit in your account. Under certain market conditions, you may
find it difficult or impossible to liquidate a position. You should
carefully consider whether futures trading is appropriate for you
in light of your investment experience and objectives, financial
resources and other relevant circumstances.
For further information
about the risks of futures trading, please read:
Futures Risk Disclosure Statement Electronic
Trading and Order Routing Systems Disclosure Statement |
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