If you’re interested in trading in commodity markets, sooner or later you will come across gold futures. These are forward contracts where gold serves as the underlying asset, and all the trading mechanics are built around several key parameters: margin requirements, delivery months, minimum price movements, daily limits, and the delivery method.

To start trading, you need to open an account with a broker. Profit or loss arises from the difference between the entry price and the exit price of the position. If you hold the contract until expiration, physical delivery of the asset takes place.

Now I’ll tell you about two main markets. On the New York Mercantile Exchange COMEX, the most liquid gold futures in the world are traded. A standard contract is 100 ounces of 99.5% pure gold; the mini version is 50 ounces, with a minimum tick size of $0.25 per ounce. An interesting point: the exchange itself does not participate in trading—it only provides the venue and sets the rules, ensuring fair transactions between participants. Trading runs 23 hours a day ( except weekends ), with a break for settlement from 5:15 to 6:00 a.m. local time.

The Shanghai Futures Exchange offers its own version of gold contracts with different parameters. Here, one lot is 1 kilogram, leverage is about 7 times, and the minimum price movement is 0.02 yuan per gram. The minimum margin is 8% of the contract value, though during major market fluctuations these requirements may be temporarily tightened. Trading is split into day and night sessions, supported by T+0 mode and two-way trading.

So if you’ve decided to trade gold futures, the choice of venue depends on your preferences for volume, leverage, and the trading schedule. On COMEX, you’ll get maximum liquidity; on the Shanghai Exchange, you’ll have more flexibility with leverage and schedule.