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Silver Futures and Options TradingTicker Symbol: SI
*
in addition is traded as CBOT – Chicago Board of Trade
with silverExchange: COMEX* Hours of Trading: 8:25 Am to 1:25 PM Eastern Standard Time Unit/Contract Size: 5,000 troy ounces Price Quote: Per troy ounce Min. Price Change: $0.005 per troy ounce or $25.00 per contract Months of Trading: Jan, Mar, May, Sept (23 mo period) and July, December (60 mo.) Last Trading Day: On the maturing delivery month, at the close of business on the third to the last business day. Considered both a precious metal and an industrial metal, there are a number price influences on silver. The price does change similarly with that of gold (following the spread between them is a common practice among investors, the gold-silver ratio). And it, too is among the highest investment risks for trading. So as always, consult a professional before investing. You could profit a lot, but loose unimaginably. Factors of Silver Futures TradingSignificant fluctuations in price can occur quickly, even between trading days. Partly due to the fact that silver can actually move between a store of value, and an industrial commodity.Silver as an industrial commodity used in the manufacture of tableware, jewelry, electronics, medical products and for photographic film affect price along with demand. And over current years, sales of digital film as a competitor has risen. Current stockpile levels, and production of mines with their associated costs, figure as well. (such as increased energy costs). Also on the supply side are estimated reserve amounts and secondary sources from dishoarding and recovery of scrap and recycling methods (film, jewelry, silverware, etc). Silver can be sent rising or falling with political and economic forces, events and crisis throughout the world. Such as in the case with the value of the dollar and with the surge or decline in oil prices. SILVER CBOT and CMOX FUTURES TRADINGLike gold, silver is traded in dollars and cents. Both COMEX and CBOT silver futures are traded at 5,000 ounce contracts. And a 1,000 ounce mini contracts is traded at CBOT. For a full sized contract, for instance, when silver is trading at $12 an ounce, would be the value of $60,000, or $12 times 5,000. For a mini contract trading at the same amount per ounce, the value would be $12,000, or $12 times 1,000.Both exchanges specify delivery to New York located vaults and these vaults are subject to change by the exchanges. Position limits for silver by the exchanges set limits on the maximum number of contracts a participant can hold, depending on whether the participant is a speculator or a hedger. Silver Options
Giving the nature of the market, COMEX silver options give alternate
strategies for dealing with market movements and volatilies.
It is flexible for reducing risk and potential loss used
in combination with futures contracts or as a tool by themselves.
The put option on silver
is usually bought in anticipation of gaining prices. The call
option is usually bought in anticipation of a decline.
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