Platinum Futures and Options are Derivatives Contracts which give investors exposure to the international price of platinum as determined by the New York Mercantile Exchange (NYMEX) through its COMEX division, a subsidiary of the CME Group. Platinum Futures contracts give investors the right to buy or sell at a fixed price on a future date. These contracts are traded by hedgers as well as speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from a favourable price movement. Contracts are cash settled in rands and can be easily accessed via
JSE Commodity Derivative members.
Platinum is one of the rarest and most highly sought after metals because of its unique chemical and physical qualities. Commercial consumers and producers of platinum can manage platinum price risk by purchasing and selling Platinum Futures and Options. Producers can employ a short hedge while end users can utilise a long hedge. Speculators also use these contracts with a view to profiting on short term movements in the Futures Contract price. Investors can use the product to further diversify and enhance their investment portfolios.
To access this product, investors need to register as a client with
an authorised member firm, deposit the required initial margin and sell or buy according to their needs.