Silver has attracted people’s attention for thousands of years. Relics of ancient civilizations include jewelry, religious artifacts and food vessels formed from the durable, malleable metal. In 1792, silver assumed a key role in the United States monetary system when Congress based the currency on the silver dollar, and its fixed relationship to gold. Silver was used for the nation’s coinage until its use was discontinued in 1965.
Silver futures are hedging tools for commercial producers and users of silver. They also provide global price discovery and opportunities for portfolio diversification. The futures contract provides access to the highly liquid metal market, benefits of central clearing and price transparency.
The Silver futures contract trades on Globex, the CME Group electronic exchange after it acquired the New York Mercantile Exchange (NYMEX) and Commodity Exchange, Inc (COMEX) in 2008. The market trades Sunday through Friday from 5:00 PM CT to 4:00 PM CT the following day.
One Silver futures contract is 5,000 troy ounces. The most common contract symbol is SI.
One futures price increment or “tick” is $.005 per troy ounce. A one “tick” move is $5. Therefore, a price move from 14.350 to 15.350 is $5,000.
The performance bond or initial margin requirement to initiate one futures contract position is $6,600 (as of November 11, 2015). To control that futures position going forward the maintenance margin is $6,000 (as of November 11, 2015).
The futures contract month listings are traded for delivery during the current calendar month; the next two calendar months; any January (F), March (H), May (K), and September (U) falling within a 23-month period; and any July (N) and December (Z) falling within a 60-month period beginning with the current month.
The futures contract’s Last Trading Day (LTD) is the third to last business day of the contract month. The December 2015 Silver contract LTD is December 29, 2015 for example.
The futures contract is deliverable and may take place on any business day beginning on the first business day of the delivery month or any subsequent business day of the delivery month, but not later than the last business day of the current delivery month.
This particular market trades virtually around the clock (including while the European markets are trading from roughly 2:00 AM CT to 10:30 AM CT and Asian markets are trading from roughly 5:00 PM CT to 2:00 AM CT) and is susceptible to outside markets and fundamental influences.
Visit www.danielstrading.com for additional contract specifications and market information regarding the Silver futures market.
Try Trade Spotlight: Futures – for 30 Days
Trade Spotlight: Futures – Trial - Trade Spotlight Futures is an email advisory that provides futures contract trade setups accompanied by definitive trade management. Trade setups are developed by applying the GBE trading methodology of chart formation breakouts confirmed through key technical indicators.
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.