CMX SILVER (XAG)
Silver futures are hedging tools for commercial producers and users of silver because they provide global price discovery.
Silver futures offers trading opportunities based on expectations of directional price, spread movement or volatility and the access to a highly liquid metals market.
Price transparency, giving all market participants equal access while maintaining anonymity in all bids and offers.
Silver has attracted people’s interest for thousands of years. In ancient times, silver deposits were plentiful on or near the earth's surface. 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.
Newly mined metal provides most of the needed supply, and Mexico, the United States, and Peru are the primary producers. Secondary silver sources include coin melt, scrap recovery, and dishoarding from countries where export is restricted. Secondary sources are particularly price sensitive.
The contract is traded on the CME futures market .
Summary Contract Specifications
- Underlying value : Silver
- Contract Size : 5.000 troy ounces
- value of the contract : silver price x 5.000 ounces
- Minimum fluctuation : 0,005 points (= $ 25 per contract)
- Settlement type : physical
- Periodicity : 2-monthly
- Delivery Period : the third last business day of the delivery month.
Trading example
- Silver quotes at 18,555.
- The underlying value of one future contract of silver is 18,555 x 5.000 = $ 92.775
- Buy at 18,555 and sell at 18,755.
- 1 tick is 0,005 index point.
- Profit: 0,200 x 5.000 = $ 1000
