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A futures contract is a legally binding agreement giving the investor the right to buy/sell an underlying commodity at a fixed price on a future date. This contract gives investors exposure to the international commodities market. The underlying instrument: gold futures contract meeting specifications as listed and traded on NYMEX through its COMEX Division, a subsidiary of CME Group Inc.
Benefits
- Easy access to the international market with a contract traded in local currency (ZAR)
- Effectively manage price risk with a view on the international market
- Effectively evaluate both the current and future world supply and demand for gold
- Identify short term and long term price and volatility patterns for gold
- Hedge or gain exposure based on expectations of directional price, spread movement or volatility in gold
Who should use this product?
- Hedgers seeking to protect themselves against adverse price movements with a view that the international market is a better hedge
- Speculators hoping to make a profit on short-term movements in the futures contract price
How to use this product?
- Register as a client with an authorised member firm
- Deposit the required initial margin (good faith deposit) to be able to take out a sell or buy futures position
- Sell a futures contract to protect yourself against downside movement. Buy a futures contract to protect yourself against upside movement.
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Learn more about Gold Futures & Options |
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