Trading in Silver market is especially a good option if you look for a hedge against inflation. However this type involves substantial risks, silver is the least expensive compared to other precious metal categories. A silver trader can have a lot of benefits. As it has high risk factor, an experienced trader can smoothly trade silver futures and options on them. Silver futures options help traders to limit trading risks, as it permits traders to perform more profitable trading practices.
Silver Futures Contracts are contacts to buy/sell a specific weight of silver at a chosen time in the future at a decided price, which is specified at the time the contract is entered. The major benefits of silver futures involve;
• The trader is entered into a standardized contract (in terms of both quality and quantity).
• Hedging against future price volatility of underlying metal.
• Silver Futures provide the trader more flexibility to go short and long.
• Trading leverage permits the trader to have control more valued underlying commodity.
• No silver metal storage risks.
Silver futures are traded dollar per ounce. Standard silver futures for 5,000 ounces are traded in both COMEX and eCBOT. There are also mini silver futures contract for 1,000 ounces in the eCBOT.
This information provided by Orient Financial Brokers (OFB), licensed and regulated by Central Bank of the UAE, to conduct brokerage in Foreign Exchange, Commodities and Money Markets. OFB offers a number of commodity futures contracts including all main oil, grain and metal contracts.
Labels: Silver Trading Futures Contracts