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Are gold futures cash settled?

Are gold futures cash settled?

While you can take physical delivery on a gold or silver futures contract, most futures contracts these days are closed prior to expiration or are cash-settled.

Are futures options cash settled?

An option on a futures contract gives the holder the right, but not the obligation, to buy or sell a specific futures contract at a strike price on or before the option’s expiration date. Most options on futures, such as index options, are cash settled.

What time do gold futures settle?

Metals

*Daily Settlement Time Ranges
Platinum 13:03:00-13:05:00 ET
Aluminum 11:59:00-12:00:00 ET
Silver 13:24:00-13:25:00 ET
Gold 13:29:00-13:30:00 ET

Is Silver cash settled?

Settlement Process for Silver Futures They square off their long/short positions in silver futures in time prior to expiry and benefit by cash settlement.

Do futures settle same day?

Yes, the process of daily settlement effectively closes the existing futures contract entered into based on the last trading day’s price and reopens it into a new futures contract expiring on the same day at the new settlement price today.

What is the difference between spot gold and gold futures?

Spot Gold – As the term implies, spot gold refers to trade in which gold is purchased immediately, i.e. on the spot. Futures Gold – Futures Gold refers to trade in which a transaction is executed on a particular date but the product delivery will take place only in the future, at an agreed upon day.

Are there precious metals futures that are cash settled?

Cash-Settled Spread and Ratio contracts, including Gold/Silver Ratio, Gold/Platinum Spread and Platinum/Palladium Spread futures, are the newest addition to CME Group’s suite of Precious Metals products. Designed to provide you with another way to manage your precious metals price exposure.

What makes a futures contract a cash settlement?

Cash-settled contracts include financially-derived contracts such as equity index interest rate futures. If the underlying asset of the futures product is a physical item that can be touched, then it is a physically deliverable futures product, also known as a “deliverable product.”

Are there futures contracts for gold and platinum?

Both the Gold/Platinum Spread Futures and Platinum/ Palladium Spread Futures contracts will allow participants to access market relevant price differentials using products based on our industry leading benchmark futures contracts.

Why are gold and silver ratio futures settled?

This will result in easier access, less operational challenges, as well as the security of clearing. The Gold/Silver Ratio Futures contract is a financially settled product that will provide new trading opportunities based on successful, highly liquid benchmark products.