Welcome Guest. Sign in or Signup

3 Answers

Gold Future contract?

Asked by: 100 views , ,

Hi,
I am new at the . I was wondering what would happen at the end of the future contract. for example, If I buy One gold future contract at ,000 (100 * 0)…and I put 5% for intial margin..

what if price won’t move above my purchase price(0) by the time my contract expires…does that mean I have to pay to my borker the of the contract…,000..and what would happen if I wont be able to pay the total amount to my broker.that means I wont be able to trade till i pay the full amount..please let me know..

thank you
Jason

Tags: , , ,

Related posts

3 Answers



  1. Pete A on May 25, 2011

    If you need to ask this on yahoo, you shouldn’t be trading gold futures.

    Nothing wrong with trading of course but better to start with something simpler like the gold ETF (symbol GLD in any regular share trading account).

    To answer your question though, check with your broker. You normally have the option to automatically roll over the contract to the next month, or have it closed out for cash. You won’t be expected to stump up 90k for the physical gold.



  2. 99999999999 on May 25, 2011

    If it remains at $900 you would break even.

    If the price went up to $950 you would make $5000 profit

    If the price was $850 you would lose $5000, That gets taken out of your margin account.

    A bank generally calls the margin every day, so if the maket goes up above $900 they put money in your account. If it goes below $900 they take money out.

    This is basic advice so be careful dealing in Futures, alot of money can be lost and made instantly. My overall advice is to be in futures for the long haul if you feel the market has bottomed. I have followed the stockmarket for over 15 years and this is the most unsteady i have seen the market.



  3. Cornelia G on May 25, 2011

    View It Now FinanceExtends (dot) com


Answer Question

Get Adobe Flash player